Chapter 8. Conclusion: Henry George’s Property Rights Law: Creating World Peace and Prosperity

While understanding that imperial powers will do everything possible to prevent losing control and they may succeed, we will proceed on the assumption that, as outlined in the above Summary, fast moving events will bring developing world alliances together. Once allied and federated, each unified economic region should, and we assume will, establish a central bank, create their own currency, and sign contracts with the newly evolved Asian centers of capital to trade resources for access to technology and training for industrial development. Though such economic shifts take time, at that point both Asia’s and the developing world’s need for trade with Europe and America would be minor.

That potential for eliminating the West’s 500 year control of the world’s resources and the wealth producing process explains why America embarked on regime change in Iraq. Though oil was the primary resource being secured, a success there would assure worldwide control of other resources far into the future. If that colonial adventure successfully installs a puppet government or splits Iraq into three isolated political units with the oil regions controlled by historic imperial centers of capital, if that control is expanded to the oil wealth of Central Asia, and if control is retained in Saudi Arabia, the old empires could offset the power of those forming alliances and retain access to resources worldwide on the same unequal terms. Other nations and alliances will have to abide by trade rules laid down by imperial nations or they would get no oil.

But the Iraq occupation became a quagmire. The world understands America’s plan, every abuse of power engenders a countervailing power, and the opposing alliances described above quickly began to form.

The developing world understands well that the United Nations is not democratic. Given that title as a cover for dictates of a few powerful nations, it was specifically designed to protect the superior rights of the already wealthy. Planned and established by the winners of WWII, with other nations essentially voiceless, that body as an extension of colonialism was a fait-accompli.

That intended “irreversible accomplishment” is centered in the Security Council. Each member has one vote and decisions are made by an affirmative vote of at least nine of the 15 members of that council, five permanent and the other 10 slots rotating every two years among the remaining 186 UN members. A ‘yes vote’ of all five permanent members—the United States, Britain, France, Russia, and China—is required before any action can be taken. A ‘no vote’ by any one of the five is a veto. Thus nothing of importance happens without the unanimous approval of those five permanent members.

While other departments of the UN can make recommendations and many good things are proposed and accomplished, the Security Council alone has the power to make decisions on all matters of importance and that charter obligates all member nations to carry out those decisions. In short, on important issues, there is no United Nations; there is only a Security Council comprised of five of the seven most powerful nations in the world. The two other major powers, Germany and Japan, lost WWII.

As the UN, fronting as a quasi world government, has been used as cover for control of nations worldwide, most the 186 non-permanent members of the Security Council, and possibly two of those permanent members, Russia and China, want a truly democratic institution. Though intended to be irreversible, in today’s world it is possible for those new alliances to force a restructuring of the UN to a truly democratic format or totally replace it.

Of those five permanent UNSC members, only three—the U.S., Britain, and France—can be considered as allied.a Russia understands well how the former Soviet Union was destabilized and China knows just as well that there are powerful financial interests behind political factions within both American political parties and throughout Europe who want to do the same to her.

Those same movers and shakers in the current administration, that of President George W. Bush, have openly stated they are not going to tolerate any nation, or group of nations, to militarily challenge America. Translated that means maintaining worldwide control of resources and the wealth producing process through military force.

As addressed above, their first major move towards assured control of resources was the occupation of Iraq which has turned into a disaster. Not only does America have most Iraqis against them, the entire Muslim world is aware that, with possibly 70% of the world’s known reserves of easily-accessible oil within their borders, they are the primary target.

The world is aghast at the destruction, torture, and oppression of American foreign policy.1 Once the moral high ground is lost, a nation’s power is greatly diminished and this has America’s mighty military essentially immobilized. Cover stories will be ignored, attempts at regime change anywhere in the world would be recognized for the imperialism it is, and, at some level, sanctions against aggressor nations posing as moral societies would be invoked.

That Iraqi suppression alerted the former provinces of the old Soviet Union, oil and mineral rich Central Asia, to further protect themselves by trade and development agreements with Russia, China, and India. The immobilization of America’s mighty military, due to loss of the moral high ground, is the opportune moment for the many forming alliances to restructure the UN to a fully democratic institution or replace it.

The key factors are the immense resources within the yet undeveloped 50% of the world, the roughly 60% of the world’s industrial capacity and trillions of dollars in reserves outside the imperial nation’s borders, and the current immobilization of imperialism’s mighty military due to America’s loss of the moral high ground. Understanding those realities provides the opportunity for developing nations to do something about the control of their destiny by imperial nations.

The current imperial assaults include: fulfill former U.S. Ambassador to the UN John Bolton’s threat to defund the United Nations if they do not accept U.S. dictates on world trade, the Doha round ending with the wealthy nations’ subsidies impoverishing the periphery of empire still in place, and forgiving debt to 18 countries but only on conditions of privatization and lowering the rights of labor to such an extent as to assure the uninterrupted appropriation of their wealth.

But the once powerless are getting stronger. Their many alliances and federations will form a power that will be difficult to challenge and they can serve notice to the historic imperial nations that the UN be restructured into a democratic and moral forum or they will form their own world governing body.

That ultimatum would be rejected by Western imperial powers. On the chance that the previous creators of history, those same major Western powers, will change their minds, the new world governing body should retain ambassadors and skeleton staff at the UN and reconvene under a new name in a major city within those alliances. The world will have moved closer to being openly and officially what it has been ever since the end of WWII, the wealthy and heavily armed developed world in open struggle with the undeveloped, previously unarmed, world over control of resources and the wealth producing process. All nations should be invited to that new world-governing body.

World federalist organizations have been working to have a constitution ready for that momentous day. The World Constitution and Parliament Association (WCPA), as does others, has one ready for revision and acceptance by just such an alliance of nations. This federation can choose the best features of each constitution, add what they feel is necessary, and accept it as their foundation law. The inequalities and injustices within the United Nations Charter compared against the equality and justice within the new world-governing body will highlight the efforts of old power structures to dictate and the new power structure to rule democratically.

With a name picked and a constitution for that governing body in place, the first order of business would be negotiations between the allied, federated, undeveloped nations and the centers of capital most amenable to their development, the fast-developing nations that must have access to those resources. Even though they would retain their staff at the UN, the developed and well armed Russia, China, India and Japan are the most likely candidates. Their presence in that new governing body would be counter-weights to those well-armed nations that historically denied freedom to the periphery of their empires.

Russia and China’s veto power in the UN Security Council eliminates the option of military assault under cover of the United Nations. The loss of the moral high ground and the insanity of attacking the now-allied 70% of the world’s population seeking the same freedoms America attained in their revolution should keep the imperial nations’ mighty militaries immobilized.

The first discussions between the fast developing nations and the undeveloped regions should be on access to resources for these rising centers of capital in Asia in trade for industrial technology and training. As they are busy signing such agreements as we write, we believe China, India, Japan, and Russia would see the greater security provided and quickly agree. The ironclad rule to never share technology except when allies were needed will have been replaced by equal access to (a sharing of) technology and equal access to (again a sharing of) resources. An economy requires modern industrial capital, resources, skilled labor, finance capital, markets and, up to this point in history, a military to protect it all. Though nothing can protect against madmen, having all that gives this forming alliance substantial security. Those who do not join put their access to resources and markets at risk. Financial monopolization would be lost.

It has been calculated that using the euro or any other county’s money as the primary currency in oil markets or any other markets would collapse the value of the dollar. Utilization of regional currencies within federated regions and a world currency to handle trades between regions would deflate the value of currencies not within the new trading alliances whose economies would be expanding. That economic alliance of roughly 70% of the world’s population, with possibly 60% the world’s industrial capacity within their borders, would spread shock through the markets of the old industrialized world habituated to control of the world’s resources and the wealth producing process.

That trap is much deeper than the collapse of markets within imperial centers of capital. Property rights laws, as created by monopolists, have nothing to do with justice or rights. It only means that those laws, the very essence of the monopoly system, is the law and it applies to everyone.b Under current property rights laws, those monopolists will flee the West’s collapsing markets and invest in those most secure. The managers of state within those four centers of capital whom we assume will join this alliance understand the process well; they watched the flight of weaker nation’s capital in 1997 which collapsed their financial markets. Then a small share sneaked back and bought up their productive industries for pennies on the dollar.

They understand just as well that massive capital fleeing to their markets would be gaining title to their wealth under the property rights laws designed by monopolists over the centuries. They know that what appears to be a bonanza as their property values rise is only a chimera that can disappear with disastrous consequences and restrictions on cross-border money flows would be put in place.c

As such restrictions would also protect countries from which that capital is fleeing, agreements between the old centers of capital and the rising centers of capital will happen. Dual currency systems, a regional currency having value only within federated regions and a world currency handling trade between regions, are the best protection against such threats to regional markets.

What we need to understand is that the unequal aspects of property rights laws monopolists have created over the past 700-plus years, and installed around the world, must be replaced by honest property rights providing each society full access to their share of jobs, pay, and social production. Using a theoretical restructuring of the American economy as an example, we will be addressing that. Such restructuring needs to be applied to monopoly laws throughout the world and the emerging world understands this. As addressed in our Economic Democracy: A Grand Strategy for World Peace and Prosperity, 2nd edition, imperial centers of capital’s financial, economic, and military might have suppressed every such attempt during the past 63 years.

We are assuming that the certainty of the aggressor and aggressed both being destroyed eliminates nuclear war as an option and conventional and covert wars will trigger embargos by the now-allied rising resource powers. The power of monopolized capital and their mighty military will be checkmated. At this historic moment, some of the levers of power will be in the hands of the undeveloped world and their allied centers of capital. We are assuming America’s loss of the moral high ground will advance that natural flow of events by many years.

Capital fleeing to cheap labor de-industrialized the United States. Just as early America ignored Britain’s patent laws and copied British industry, China and other countries are ignoring Western patent laws and producing copies of almost every manufactured product in world trade. Those knock-offs and the education of 400,000 PhDs per year in the hard sciences is designed to bring Chinese technology abreast that of the wealthy world. At that point, a de-industrialized America would be in grave danger.

Key to those agreements between the fast developing world and the undeveloped world will be moving patents into the public domain. The first such steps have been taken. In the contract to launch satellites for emerging nations’ worldwide TV, radio, and phone systems, China has agreed “there are to be no technological secrets kept from those South American nations.” Establishing the most efficient low frequency WiFi throughout the forming alliances with no royalties to be paid will be a big move towards breaking patent monopolies.

The biggest hurdle, WiFi communications to keep all citizens abreast of plans to provide a quality life for all citizens, is already becoming a reality. With many times the population of the wealthy world, with an equal per capita percent, but a far greater total, of geniuses, educating many times the engineers and scientists, and with those four centers of capital sharing their technological knowledge with the developing world, within a generation the once-impoverished world will pour out both consumer products and inventions.

Even as technology was being denied to most of the world, we marveled at the fast industrial development of East Asia. Yes technology was shared with Japan, Taiwan, and South Korea and later with Malaysia, Indonesia and China., but that accident of history was only to stop fast expanding socialism.

Later, monopolists saw the opportunity for huge profits through moving their industries to those low-cost labor countries. That lust for profits through moving productive capacity to Asia, that accident of history which created the trap monopoly capital finds itself in today and which opens an opportunity for world peace and prosperity.

As opposed to ad-hoc development of the world with major powers denying development to all except those deemed necessary for allies to stop fast expanding socialism, this new alliance will recognize the obvious: security for all means bringing the current impoverished world to a sustainable development level that provides a quality life for their citizens. As most the world’s resources are primarily within their borders, the half of the world that is without measurable economic infrastructure or industry can be quickly developed.

Full and equal rights for all and protection against those who would deny that should be the purpose of these alliances. All resources should be mapped and banks, roads, railroads, alternative energy power systems, industries, water and sewer systems, and all other infrastructure for an efficient, sustainable, regional economy should be planned. This takes care. Large industrial capacities—for tractors, construction equipment, etc—are required to capitalize a federated region but, once a region is developed, only small production capacities are necessary to produce parts for that machinery.

Japan has more industry than necessary to produce for her 120 million citizens. That exports are necessary to pay for imports is valid under monopoly rules but only partially valid within a properly-planned, sustainably-developed, region. For examples, in a peaceful, federated world, Japan’s defense needs disappear, permaculture and orchard farming on its own land can feed Japan,d and there is waste within the Japanese capitalist-cartel economy just as we documented is in the American economy.

With efficient centers of capital ready to support them, a federated region, even entire continents, can be developed to a sustainable level and all poverty eliminated in a very short time. Compare that with the monopolized economies of America and Europe which have been industrialized for 150 years and they still have large impoverished populations. The problem is not whether it can be done or not. The problem has been the appropriations of wealth both within internal economies and that of other nations preventing development.

The original designers of property rights laws for the monopoly system did not even consider the possibility that a large share of their citizenry could one day be well off. That this happened in Southeast Asia and within the imperial centers were both accidents of history. Not only did monopolists need allies to maintain control of the world, they needed the allegiance of their own citizenry. That, and the enormous efficiency gains of technology, provided a quality life to many more people than ever anticipated. Those enormous gains were under property rights laws designed to prevent sharing that wealth. Establish laws and policies for equal sharing, of the efficiencies of technology and severe poverty will disappear in 10 years and a quality life for all can be attained in less than 50 years.e

The common thread that maintains impoverishment of resource-wealthy regions are the thousands of agreements and contracts based upon unequal and unjust property rights laws, both in internal trade and world trade, designed by the Western world, primarily Britain, over a period of 700-plus years which locks others into their monopoly system. This is now understood and alliances are being formed to take control of their destiny. Venezuela and Bolivia are leading the way through renegotiating their unequal carbon fuel extraction contracts. Russia has renegotiated their contracts and oil companies now retain only six cents of every dollar above $27 a barrel.2 Through modern communications—the Internet, the many national and international news programs on Free Speech TV, Link TV, the potential of WiFi, and the emerging TV networks controlled by the world’s previously dispossessed spanning the world—the rest of the impoverished world will be watching these dramas unfold and strengthening their alliances to attain more negotiating power.

We will proceed under the assumption the imperial centers’ mighty military and financial power has been checkmated and that disaster reflected in the collapse of their stock and financial markets. Since the alternative news and new world-wide communications systems will be telling that story, corporate owned media within those imperial centers will eventually have to address the reality that imperial foreign policies have created a disaster.

Due to the collapse of markets based on the theft of the wealth of once defenseless nations now protecting their resources and markets through powerful alliances, a realigned world government, and trade agreements between the rising centers of capital and resource-wealthy poor nations, the arteries of commerce and monopoly-created values within the old imperial nations will crumble. After all, it is structured totally on the theft of wealth both within internal economies and through world trade. Those worldwide unequal trades being converted to equal trades will lead to the collapse of the internal economies of those imperial centers.f

Fred Harrison’s book, Boom Bust: House Prices, Banking and the Depression of 2010, reviewed in GroundSwell, Nov-Dec, 2005, agrees with our analysis that a financial and economic crash is coming and his timing seems insightful. Leaders coming to the fore must face up to the reality that the cause of economic crises and wars is monopolization and the cure is abandoning that centuries-old system of plunder, war, oppression, and cyclical economic crisis.

Cultures within the above emerging alliances are not locked into the Western system of exclusive titles to nature’s resources and technologies, the essence of monopolization. They were forced into the Western system of property rights and they will throw it overboard as soon as reality dictates that those changes be made.

When that crisis arrives, their choices are only three: retain the Western system of exclusive title to nature’s resources and technologies, revert to some form of command economy, communal or socialist, or turn to Henry George’s mighty economic and financial engine with full and equal rights for all through conditional title to nature’s bounty tempered by communitarian principles.g Not being emotionally and culturally tied to the West’s property rights system, some will choose elements of all three. Though any of those choices will keep their economies going, the inclusive, efficient, intensely competitive principles of Henry George’s property rights laws make it the best choice.

In every extreme crisis, aftermaths of WWI and WWII or the Great Depression of the 1930s with its 89% collapse in values, the Western system of property rights came close to being overthrown by ballot box revolutions.3 It is not reasonable to think that the citizenry of America and Europe will patiently watch the developing centers of capital—China, India, and Russia, along with Japan, successfully ally with the emerging world while the West’s economies become moribund and their children cold and hungry. As war against 70% of the world will be unacceptable to the developed world’s own citizenry, new leaders must be voted in to restructure their foreign policies and their economies. Perhaps the American election upset of 2006 and the even greater upset expected this year (2008) will be examples.

The typical choice of government within the imperial centers during such a crisis, a fascist militarized command economy such as much of Europe turned to during the Great Depression of the 1930s, we have analyzed as no longer an option. After all, no center of capital or alliance of centers of capital can militarily conquer and control an awakened 70% of the world’s people. Just like each of the various cover stories for the attack on Iraq quickly fell apart, every such cover story would be seen through by an awakened and informed citizenry within those imperial nations who, hopefully, would not permit it.

Western property rights laws collapsing would leave America and Europe with the same choices of governing structures as the rest of the world, a communal or socialist structure or Henry George’s mighty economic and financial engine powered by the full and equal rights of honest capitalism. With their citizenry trained to distrust communal and socialist principles, Henry George’s inclusive property rights laws would be the likely choice. But, so few know about that philosophy, only a powerful president with exceptional vision and integrity, such as Franklin Roosevelt in the Great Depression of the 1930s, could guide a nation to its own salvation.

In this crisis, like all others in history, families will be cold and hungry. Then is when an alert president can take the helm and guide the nation through the storm. Taking stock of the crisis, this president will calculate that much of the collapsed values which once measured the wealth of the citizenry will have been pledged to loan institutions. He or she would know that for centuries monopolists firmly enforced the rule that the final mortgage holder will, in the case of bankruptcies, own all property backing defaulted loans. He or she would understand that those privately-owned loan institutions go broke right along with their customers. Japan keeping their loan institutions open and their companies funded for 15 years when under just such a crisis. The alliances discussed above, rapidly restructuring their banking systems and economies under this expanding crisis, would be under discussion.

It is understood that America’s Federal Reserve is an arm of government and the trail blazed by Japan, really the only option, will be taken. But this crisis will be different than all others in history, including Japan’s. Three times—after WWI, in the depth of the Great Depression of the 1930s, and after WWII—the monopoly system avoided its overthrow only by a hair. This time, with half the world industrialized, but divided into various centers of capital, and the yet-unindustrialized other half fully aware, there should be no way to save it.

The scope of this crisis and the need to totally restructure the economy requires more than a bank holiday as declared by President Roosevelt on March 6, 1933. The fiction of the Federal Reserve being privately owned must be ended through returning the small amount of money paid to supposedly, but not actually, take title to the Federal Reserve. That option is in the 1913 law and exercising it would formally take control of that crucial heart of the banking system. As the federal government has—in one way or another—guaranteed most loans and the banks go bankrupt right along with their clients, the rules of monopoly capitalism are that society now owns those banks. Social ownership of the banking system needs to be and, through nationalization of the bankrupt banking system, can quickly be, made official.

Before going into the simplicity of using the power of a socially-owned banking system to stop an economic crash in its tracks and reorganize an inefficient unequal economy to one that is highly efficient with full and equal rights for all, we must point out that current powerbrokers understand the process very well. They were using these principles to prevent financial and economic collapses well before Japan put them into practice.

The one-day stock market collapse of 22.6% in 1987 was nearly double the first day of the October 29th crash which heralded the Great Depression. Wall Street was paralyzed. Banks were told to keep loaning money to those bankrupt brokerages and the government guaranteed everything. The same quasi money creation features were implemented to resolve the earlier 1982 Savings and Loan scandal, the 1990 Citibank bailout, the 1994 Mexico crisis that threatened U.S. banks, the Asian currency crisis of 1997-98, Long-Term Capital Management’s bankruptcy crisis in 1998, the stock market crash of 2000-2001, and is being used in an attempt to prevent the bursting of the current, 2007-08, housing-stock market bubbles from crashing the world economy.h (This book is written on the possibility that this time around will be the great collapse.)

However, that money was being created to protect the monopoly system, not the people per se. Under such protection, the imbalances become greater and greater and the day may have arrived when, under the rules of capitalism, they can no longer shore up the bankrupted system. To prevent such a crash this time around, base money was being increased (created) by the Federal Reserve four months ago at the rate of at least 13% a year. By September 2007, the money creation rate may be, for a six week period, double that. When this all unwinds, the destruction of money through bankruptcies may overwhelm the private banking system and all other financial institutions worldwide. The need to replace that ad hoc system with a socially-owned banking system within all regions will be imperative. The goals must be the greatest good for the greatest numbers, food, fiber and shelter for everybody, protecting the savings and equities of the maximum number of people, and establishing an efficient economy.i

This president and his or her advisors will have analyzed that a socially owned banking system could create the money to stop the economic collapse in its tracks, to restructure the economy, and quickly establish prosperity. With that vision, our courageous president and frightened Congress nationalizes the banks and a decree is issued for every head of household—husbands, wives, or singles—without a job and without other income or resources to apply to their bank or credit union for a monthly subsistence based on single households receiving 75% that of married couples and an allowance for each dependent. The loan institutions will put their account’s electronic transfer number on that application. That form will include testimony, under oath, that they have no income or resources. Upon signing, and on the 1st of each month thereafter until receiving their first full paycheck when reemployed, subsistence funds will be computer-deposited into those accounts. That person would walk out with funds in the bank to cover food, fiber, and shelter for that month and each month thereafter, until employed, those debit card and check-accessible funds will be deposited each month until that person is employed. Those who would be against this would be so out of sync with events they will be few and irrelevant. Though only modest amounts of cash can be withdrawn, all trades can be quickly consummated through checks, credit cards, or debit cards which are the real money in a modern economy.

With this first break from Western property rights laws as structured over the past 700-plus years, all Americans are now fed, clothed, and housed and the worst aspect of the crisis, a cold and hungry citizenry, is under control. Spending of those subsistence funds will increase demand and quickly start stabilizing the economy. With money flows across national borders controlled through operating countries and regions with new currencies, any shortage of circulating money for subsistence payments’ continued funding or repairing economic infrastructure can, up to the level of a balanced money supply, be created. The need for a dual currency system to handle world trade is discussed in chapter one and below.

Inflation threats due to too much circulating money as it is created are easily handled. If required reserves of 3% are increased to 6% in step with money creation doubling reserve deposits (base money), the circulation of money will be reduced by half and the money available (to borrow or to spend) remains the same. A 30% increase in reserve deposits, due to an increase in created money, will require a mandated reserve increase to possibly 4% to maintain the same money supply. However, both money and investment confidence will have been destroyed in the economic collapse, creating inertia, and increasing those required reserves will be only after the economy has returned to normal and threatens to inflate. Once attaining a balanced money supply through building infrastructure with created money, that balance can be maintained through higher or lower required reserves.j Economic balance can be attained through resource rents and banking charges covering the costs of infrastructure, health care, and, though society may decide to do it through payroll deductions, retirements.

In such a crisis, a socially-owned banking system can very closely target the destination of money. Both the initial distribution of socially-created money and destruction of any surplus, if necessary, through increased mandated reserves, along with careful choices for loans, are tools to focus the destination and final owners or controllers of money. Both deflations and inflations can be avoided and the only crisis would be from natural disasters, see footnote, p. 30.

Both poorer and intermediately developed regions of the world will want to keep their economic development going. With economies worldwide crashing, it can only be done if their currency cannot be spent outside their borders. This requires a world currency handling trades between nations or federated regions. Under that dual currency system, each economically viable region can create base money to build infrastructure or, early on, even industries. With the understanding that matching higher reserve requirements permits money creation at any appropriate level, it is possible to operate any economy at very high levels of money creation.

As many have done this already, the nations of Asia and the developing world will be restructuring their banking systems under their own or a regional currency. With their banking systems now protected against cross-border flows of money and with development planning carried on through regional alliances, each region can develop sensibly and steadily at the maximum pace allowed by the construction equipment and resources available.

A world trading currency under control of one nation, the dollar, or one bloc of nations, the euro, puts others at the mercy of that nation or bloc of nations. This president initiating negotiations to protect each currency from rapid money flows across borders will be the flickering beginnings of a true international currency for a peaceful federated earth. Going to an international currency for world trade and retaining trading currencies that can be spent only within federated economically-viable regions creates a dual currency system where national currencies are valid only within the borders of each currency region and a world currency valid for trade between regions. A world currency is, of course, what we have now except America is in charge of the international trading currency. There are no cross border controls and leaving an imperial power in control of the world’s trading currency is an open invitation for financial destabilizations within the alliances we are addressing as crucial for the world’s final break for freedom.

We will assume those negotiations led to establishing a democratic Bank for International Settlements, an honest World Bank, overseeing that dual currency system. Only if internal currencies are valueless outside a trading bloc can a region rapidly develop and its currency and economy be protected. That world currency would handle trades between nations and regions. As the money of a properly-structured world bank will be only numeric values stored within computers, there will be no paper currency, this will eliminate both counterfeiting and black market exchanges. The “flickering beginnings” of a world federation with a world central bank will have become a steady glow.

Having addressed control of the flow of money across borders so regions can create money and rapidly develop, we return to the collapsed American economy which has just been stabilized by creating money for subsistence payments to the unemployed, for restarting the economy, and for economic structural changes we have yet to address.

With the old powerbrokers keeping a low profile and an appreciative citizenry paying close attention, this president realizes lobbyists can no longer block insurance and universal health care being legislated as a social and a human right. Faced with the logic of better service at half the price, as over 12 states are considering, see Michele Andrews, Covering the Uncovered, U.S News & World Report, May 14, 2007, those secondary monopolies will quickly be legislated, or voted by referendum, out of existence. The once cold and hungry citizenry are now warm, well fed, and their insurance and health care costs, have dropped, or will drop, by half. With food, fiber, and shelter for each citizen secure, crime will drop rapidly and the prison population and legal system will eventually shrink to a shadow of its current self.

The genie will be out of the bottle and it cannot be put back. The advantages and efficiencies of a socially-owned banking system, universal health care and necessary insurance as a social and human right would be so obvious that the citizenry will be looking forward to a continued restructuring to full and equal rights. A dialog on abandoning the monopoly system structured within property rights laws for the past 700-plus years will be on-going world-wide. The wastefully-used insurance offices being turned to productive use, even as all citizens are fully insured at lower cost, will enter that discussion as an example of the great efficiency gains that are possible.

Considering an entire generation will have to be reeducated, though restructuring should start immediately, rationalizing health care will take time.k But, with that discussion now mainstream, the legal foundation for universal health care, for ascertaining the safety and usefulness of every food additive and drug, and for broad establishment of permaculture will be secure.

The citizenry worldwide, having been watching closely the on-going drama in America, will understand Henry George’s key concepts: Human labor did not produce natural resources, nature offers it to all, and a rightful share for each can be had through society collecting natural resource rents. All other taxes disappear as those resource rents and bank profits, along with socially-created money, are returned to the citizenry through being expended on running governments, building and maintaining economic infrastructure, health care, retirement, and, in emergency, any social need.

. When the citizenry learn that other taxes will disappear as the purchase price of land drops to zero even as use values increase, society collecting resource rents will be an easy sell and that would pass by law or referendum. The mother of all monopolies will have been eliminated,l all would be receiving their share of the wealth produced by nature, and, for the first time in history, an honest capitalist society will have been established.

As opposed to the excluding social structures designed by monopolists the past 700-plus years, under the principles of inclusive property rights laws as designed by Henry George, taxes will be quaint history, retirement funds and universal health care can be funded through resource rents and bank profits or, though more expensive, through payroll deductions. The equal sharing of jobs, a reasonable ratio between higher and lower paid labor, higher skilled and lower skilled, and an ongoing analysis of the economy requires an accounting system. Social Security and universal health insurance payroll and self-employed deductions, along with business required to annually file their profits and production figures, can, if proven necessary, provide that accounting data.

Whether social needs are financed through resource rents, banking profits, socially-created money protected against inflation through flexible required reserve levels, or savings within the circulation of money depends upon both efficiency and responsibility. One is responsible for most the amenities of life and these are paid for from wages or savings. Health care and retirement are social and human rights and most efficiently funded through socially-collected resource rents and profits from a socially-owned banking system. The savings possible under an economy fully restructured to Henry George’s property rights laws, including his powerful economic and financial-engine-created investment funds replacing appropriated values capitalized into huge blocs of capital, are so enormous that money to fund this peaceful society will be in plentiful supply.

As all the above is taking place, accountants experienced in real estate will be assessing the value of all property before and after the financial collapse. The price mechanism of capitalism had measured those values but those old monopoly-created values and the 60% of the current blocs of capital created to buy and sell those capitalized appropriated values were not legitimate then and are not legitimate now. But protection of honestly-earned savings mixed with those monopoly values requires reduction in debts at the same ratio as the rationalization (collapse) of property values. Part of the roughly 60% of finance capital has already disappeared due to the financial collapse and erasure of revalued debts, the discussion three paragraphs below. That which has moved on to other investments, primarily bonds, is dealt with further below.

Under these inclusive principles, land values are now zero but the use values more valuable than ever and the renewed titles to land (resources) will require paying resource rents to society. With property reassessment ongoing, this president proceeds to clear up titles to all property and, with the greatest good for the greatest number in mind, restore the financial health of the citizenry. With current values assessed and with previous owners having first rights, the land under all homes, all farms, all mines, and all industries shall be listed as available to the current owners, previous owners if property had been foreclosed upon, through paying monthly resource rent. Considering those resource rents are offset by all taxes eliminated, the land under homes and small businesses will, relative to today’s tax structure, be utilized at no net increase in cost. It must be emphasized that the property owner has all rights to that land except the right to retain, or collect, a private tax, the land rent. Those resource rents being spent on infrastructure and health care and all taxes eliminated triply compensating rent-paying citizenry must also be noted.

With resource rents paid to society, land values are zero and use values rise as soon as those laws are enacted. As capitalized values of land have disappeared, loans against nature’s wealth must be erased from the records and that against structures revalued to current values.

Registered owners, including former owners of foreclosed properties, will have first rights. Acceptance of that new title with its revalued debts obligates owners to pay monthly resource rent to society and, if a debt is owed, make payments on value adjusted mortgages by debts against land erased and that against structures revalued. If 50% of loan value was backed by the land before the crisis, that 50% loan value is erased. If homes and structures, separate from the land, were half paid for before the collapse, the remaining loan would be discounted to 50% those structure’s current value. Autos, boats, and other loans would be similarly restructured. Paid-for property would not be affected except that landowners would owe monthly resource rent to society.

Those with more than one home, or other resources, will not be receiving subsistence payments until those resources have been consumed. That rule would not apply to an owned business in which that person is directly employed and which is temporarily idle due to the crisis. Such productive resources would be entitled to protection and support from the socially-owned banking system in the same manner as these suggestions for protection of titles to homes.

One’s home ownership rights under a socially-owned banking system while restructuring, should not go beyond funding for one home. Under the financial crisis, most second homes or investment properties carrying debt will have been repossessed by the loan institutions. Assuming a rental home had been repossessed, those renting would be first in line to purchase those homes and financing would be available. This socially-owned banking system, being not-for-profit, has replaced trillions of dollars in uncollectable debts with collectable debts at the same debt-equity level as before the collapse.

A private bank can write off only a modest amount of loans before they are bankrupt. Under Henry George’s powerful financial engine, since all values are real, socially-owned banks would write off far fewer loans in normal times than a private bank. However, when stabilizing a crisis such as we are now addressing, a socially-owned bank can erase all debt that is necessary. The process is simple and the rights of all can be protected while stabilization of a severe crisis is not viable under private banking and restructuring is equally impossible. Protecting borrowers would be in direct conflict with current property rights law and private banks’ maximization of profits, and protection of assets.

With the citizenry understanding the monopoly system they previously were unaware existed, and with property rights of the maximum number of people secure, this is the time to tackle the doubling, possibly tripling, of consumer costs due to patent monopolies. Explanations to the citizenry on how consumer prices are at least twice that necessary will make those legal changes imperative. Whether by Congressional action or referendum, those patent laws will change to paying inventors well and placing patents in the public domain. When that law is fully in place, eighty-five percent of the activity of casinos known as stock markets will disappear. The resources and talented labor previously battling within equity markets over who shall claim the enormous wealth produced by technology will be available for truly productive use.

Current patents will be in force for up to 20 years. Transferring technology to undeveloped regions in trade for access to resources while letting them run out within the developed world, will give corporations those 20 years to unwind from their monopoly positions. When unwound, their production-distribution capacities will be intact but they will no longer be appropriating wealth through monopolization. As the gains and protections of society as a whole are obvious, other countries would adopt the same patent structure.

The wealthiest nations have greater dependence upon developing world resources. Rising centers of capital will be rapidly transferring technology in trade for access to those resources. All will recognize that Western property rights laws (monopolization patterned after aristocratic law) had effectively collapsed and they will adjust accordingly.

Monopoly values of corporations are primarily capitalized values of wealth appropriated through exclusive title to nature’s resources and technologies, the monopolization process. These are all big boys fully believing in the system they had created and which had now crashed. As most those values had been appropriated from productive labor over the years and those property rights laws— now proven as a system of theft—have been abandoned, nothing is owed there.m The economic collapse plus the loss of monopoly values will drop the value of many corporations below their debt values (values collapsed 89% in the Great Depression). As the original private banks will have been holders of 1st mortgages, the now socially-owned banks will own most of those corporations and the looming elimination of patent monopolization, along with the economic crisis, would, as in all great crashes, collapse many stock values to that of wallpaper. As private property and free enterprise should be maintained, distributing shares to labor and management within those corporation as loans at market-value, and with those loans to be repaid along the principles of the subchapters “Accumulation of Capital under Henry George’s inclusive property rights laws” and “Investment and Job Opportunities” would resolve that equitably. With its own workers the new owners, along the lines of those subchapters, those industries would be operated efficiently.

By the same debt revaluation formulas as above, the modest market values acknowledged in those payments would be distributed among what few previous creditors are still standing. As in all economic collapses, those values will be low to nonexistent. It will be the responsibility of the new manager-owners to operate a productive-profitable company and rebuild values. For that purpose and for new entrepreneurs, a department within the socially-owned banking system would fund those major industries and businesses. Since this banking system has the power to direct socially-created money to areas in need while simultaneously holding required reserves high enough to destroy surplus buying power and maintain a steady money supply, and each industry or business being responsible for their debts, conservative funding would not be a problem. Loans to cover expansions and new enterprises would be available at interest rates high enough to cover risk.

The many subdivisions of financial empires within the ethereal world above the real economy will have collapsed when the economy crashed. The socially-owned and controlled banking system will keep the real economy operating while, along the guidelines addressed below, those many methods of intercepting wealth within that vapory world that are reducing economic efficiency can wither on the vine. As most are financial empires built capitalizing appropriated values, roughly 60% of America’s current huge blocs of capital are unneeded. Except that they were unearned, a large share is invested in honest production which we address below in the discussion on bonds. But a large share also circles in the ethereal world of high finance looking for more ways to lay claim to wealth produced by others. Except for bonds, most those intangible ethereal values disappeared in the economic collapse.

A great hue and cry will go up that these blocks of capital are necessary to operate an efficient economy. That warning will be muffled as the economy, pulled by the mighty engine of Henry-George-capitalism, doubles the efficiency of the economy. Once full and equal rights are established a slim, trim, “real” economy will replace the highly-inefficient laissez-faire economy which had evolved into a crazy quilt of methods to intercept the wealth produced by productive labor. Each of those best and brightest who once owned and operated those niches within a monopolized economy will be guaranteed a “productive” job. There will be no need to carve out a survival territory or a financial empire within the economy. Those who see opportunities for truly productive use of capital will have a job or investment capital by alerting bank managers to those investment needs. An alert citizenry and those within the banking system will recognize scams and paying those well who spot criminal or inefficient uses of finance capital will keep an economy operating at maximum efficiency.

With a socially-owned banking system, what we have addressed philosophically can be done. It cannot be done under a private banking system because those property rights laws are designed for maximum rights to monopolists and minimum rights for all others. In each financial crisis, the relative wealth of deeply entrenched monopolists increase as the entire nation goes broke. If your property is half paid for, the creditor owns half and you own half. But, when a financial crisis hits, values drop, the creditor owns it all, and you own nothing. Instead of claiming what is properly your equity, a socially-owned banking system can rebalance debts to match value collapses and protect everyone’s honestly-earned equity. However, it has no responsibility for protecting unearned wealth within the old property rights laws. A large share will have disappeared in the above collapse and revaluations. We address the remaining unearned wealth in the bond discussions below.

The citizenry should be alerted that the goal is to restructure the property rights laws established by Western power brokers over the past 700-plus years—which caused this, and all past, economic crises—to Henry George’s property rights laws with a quality life for all while working only two to three days a week. Though it can also be done under socialist or communitarian principles,n this philosophy retains a capitalist system while eliminating monopolies.

Recognizing the security of titles to land with an initial purchase price of zero through paying resource rents to society, noting the efficiencies and equality of a socially-owned banking system, with the properties and equities of the maximum number protected, with necessary insurance and universal health care as a social and a human right, with the promise of the respect and security of a productive job, and all this now part of the social dialog, a mandated reduction of the workweek to create a highly-efficient economy will be an easy sell.

Among those large numbers of unemployed will be people well qualified to calculate the number of productive jobs in a fully rationalized, efficient, economy. Let’s say their calculation matched ours, 2.5 days work per week for each employable citizen. From that calculation, Congress would pass and a President would sign, or a voter referendum would authorize, a reduction of the work week by that 50%. A productive job for each is now guaranteed.

Subsistence payments continuing as wages during the first one or two months, or more, of an employment-learning period will readjust the workforce smoothly. Highly skilled jobs, pilots, railroad engineers, etc, will take substantially longer. A few skills, such as scientists, may take years to rebalance the workforce but that and a stable money supply can be seamlessly accomplished.

There are people that are much more productive than others but not so productive as to justify the current wide disparity in pay. There will be exceptions—an Einstein, an Oprah Winfrey, a president, and a few others—but serious researchers have concluded that a differential in pay no greater than four to one is reasonable. Through raising the wages of the lower paid, this badly needed social adjustment should be put into effect simultaneously with sharing those productive jobs. Both poverty and substance payments are now history. We have stated consistently that the cost of products and services would drop roughly the same 50% as hours worked. Thus living standards will be approximately the same as before the collapse.

While the economy is being restructured, primary-created money should be spent for building and maintaining basic infrastructure. That money, as did the subsistence money, circulates and returns as reserve deposits (savings) available for spending or for loans. At the start of this crisis, banks may be able to pay out only a modest amount of cash but that crisis within a crisis will quickly subside as all checks or credit card-debit card charges against adequate bank balances within this socially-owned banking system are honored. With debts restructured, property titles secure, with honoring of all adequate bank balances proving a socially-owned banking system automatically has 100% reserves, and with buying power in consumer pockets, the economy has nowhere to go but forward.

There will be other problems to resolve but, once the banking system is under social ownership and monopolies are eliminated, those are all solvable. The key is that most will have lost everything as the economy collapsed and everyone comes out of the economic crisis with secure title to homes and businesses, secure jobs, and equal and adequate pay. Those full and equal rights create an economy that, so long as monopolies and inefficient social structures are avoided, will maintain stable and secure values for millenniums. After historic past economic collapses, citizenry distrusted banks and were afraid to go into debt. In contrast, this, potentially the worst of all collapses in history, would be so short, and security restored so quick, the citizenry will soon spend and save normally.

We have analyzed WiFi as so efficient that it has the potential, possibly the certainty, of destabilizing the entire world monopoly system. It is observing that possibility that led to this analysis of the least traumatic way to restructure to a peaceful and prosperous world. So we allow the communications industry as quickly restructuring to a fully WiFi wired world along the lines of chapter five, Communications. Phone, cable, TV, and radio monopolies, as well as 85% of the brick, mortar, and labor of the education system and possibly 60% the infrastructure of retail industry, disappear.

With the old power structure totally discredited and thus without a political voice, alert and moral managers of state and a frightened Congresso or voter referendum would pass the necessary restructure laws as described above. With a citizenry enjoying the security and higher quality of life of these restructurings, constitutional and other legal challenges will be quickly set aside by national referendums.p

Only under a socially-owned banking system can you quickly provide subsistence payments to a cold and hungry citizenry and simultaneously restructure debts and the entire economy. It is that quick alleviation of the crisis and rapid restructuring which alerts a citizenry to the full and equal rights possible by abandoning the monopoly system so carefully structured the past 700-plus years. For centuries economic classics have told us that this is the best of all possible systems. Until an alternative example has been put in place, most will be unaware those monopolies even exist. Besides the classics, that misguided belief system is due to monopolists funding justifying philosophers, primarily through the spin of think tanks in step with establishing and as a part of maintaining the monopoly system. That explains suppression of the world’s breaks for freedom the past 60 years. If any example of full and equal rights for all ever successfully established itself, the monopoly system would have stood exposed and would have collapsed.

An efficient world economy requires each region producing most of their consumer needs. Part of restructuring the American economy to keep everything local will be rebuilding regional industries that were sent overseas. Creating money for those industries, along with that for building infrastructure, will increase the economic pulse.

That is why undeveloped regions of the world require a regional currency acceptable only within the borders of an economically viable region. With a regional currency, money to build both industry and infrastructure can be created and that, plus resources and skilled labor, are the fundamentals for wealth production. That foundation of an industrial economy, plus the wealth produced, backs the socially-created money, each unit of money is equal to the use value being bought or sold, and its circulation operates the economy.

Necessary adjustments will be made after an analysis of how these monopoly laws evolved over the centuries. The conclusion can only be that they were property rights laws put in place undemocratically to lay claim to wealth produced by others and those huge blocs of capital invested in bonds are, beyond the roughly 40% which were honest earnings and savings, appropriated wealth.q

Thurow’s explanation that “patient savings and reinvestment has little or nothing” to do with generating large fortunes bears repeating:4

[A]t any moment in time, the highly skewed distribution of wealth is the product of two approximately equal factors—instant fortunes and inherited wealth. Inherited fortunes, however, were themselves created in a process of instant wealth in an earlier generation. These instant fortunes occur because new long-term disequilibriums (sic) in the real capital market are capitalized in the financial markets…. Those who are lucky and end up owning the stocks that are capitalized at high multiples win large fortunes in the random walk. Once fortunes are created, they are husbanded, augmented, and passed on, not because of “homo economicus” [economic man] desires to store up future consumption but because of desires for power within the family, economy, or society.5

Bonds are the final sanctuary for appropriated wealth. While all other values are collapsing, interest rates fall and the values of earlier-issued bonds with higher interest rates rise. A doubling of bond values as real property values crash can be a quadrupling in relative values. Thus bankers control inflations and deflations by interest rates instead of adjusting mandated reserves. They move into bonds at the peak of interest rates and into stocks at the bottom.

Just as aristocracy’s titles to land was for centuries the proverbial elephant in the living room denying all others the right to enjoy their full and equal rights, that elephant’s children, the share of that 60% of those huge blocs of capital once buying and selling capitalized appropriated values that have moved to other investments, are still preventing full realization of rights.

As we address the simplicity of eliminating monopolization within each sector of an economy through restructuring to Henry George’s inclusive property rights laws, we pointed out that appropriated values were no longer there because they had been transformed into equally-shared use values. But for centuries the money realized from selling those capitalized appropriated values had been moving into other investments, some into productive industries—addressed above in which those appropriated values disappeared—and some into bonds in which those values, both honestly earned and appropriated, have possibly doubled or tripled.

We will break through the complexities of millions of transactions through a simple example: If John Jacob Astor had given 100-year-leases on Manhattan Island, instead of selling it off piecemeal; those hundreds of billions of dollars in today’s value would belong to his ancestors. If those ancestors still held title to that land as the economy was restructured to society collecting the land rent, values tied to land will vanish. But if they had sold that property before that restructuring, the new owners and the banks holding the mortgages would take that loss while Astor family money will be safely invested somewhere else. As it most likely would be, we will assume they invested in bonds.

Instead of those hundreds of billions of dollars going to Astor’s descendants, those monopoly profits were shared among the tens of thousands of people who bought and sold property on Manhattan Island the past 150 years. A large share was reinvested, a large share went for extravagant living, and another large share provided a comfortable life without the expenditure of labor.

That spent for high living and a life without labor have largely been wasted. That spent for entrepreneurial investment is a relatively efficient aspect of monopoly capitalism. Most loaned out at interest is also properly invested. But both the profits and the interest on that unearned wealth have to be paid for by the very people from whom that finance capital was first appropriated. And it will be paid for again and again, on into perpetuity.

Within the property rights laws, as structured, those monopoly profits are properly invested. But current titles to nature’s resources and technologies, derived directly from aristocratic property rights and fine-tuned for the past 700-plus years as Western property rights laws, are unequal, inefficient, and unethical. That marks a substantial share of properly-invested funds as unearned wealth. So we have moral investors functioning within an unethical system. Those unearned blocs of capital create problems for a final restructuring to an efficient, productive economy with full and equal rights for all. Even though an economy is restructured, a large share of those huge blocs of capital that were created only to buy and sell capitalized values of appropriated wealth are now invested in bonds. Those unethically earned yet morally invested funds are both perpetuating the cycle of unearned wealth and blocking investment of honest savings and socially-created money.

Example: we addressed above how the need for safe investments for these blocs of appropriated wealth led bankers to ignore the potential efficiencies of modern fractional reserve banking to create debt-free money for highways, railroads, water systems, sewers, WiFi communication, libraries, parks, etc. Such simple financial efficiency was ignored to provide a safe place to invest appropriated wealth.

Until those huge blocs of appropriated capital are addressed, the same problem still exists in a restructured economy. Investing that unearned wealth in property would inflate values. As per above, investing in bonds would deny society the right to create money to build infrastructure and higher mandated reserves so as to reduce inflation when creating money for those purposes would penalize honestly earned savings. So it is impossible to restructure to an efficient economy without directly addressing those huge blocs of wealth which were unethically earned but ethically invested.

How do we resolve the conundrum of moral investors amassing wealth within an unethical system? The appropriated wealth represented by unearned values in banking, land, technology, communications, insurance, health care, the legal system, etc, have been eliminated by the above restructuring to the inclusive property rights laws of Henry George. Having no choice, those invested directly in those monopolies have taken their loss and, still having a secure life. They can philosophize on their experience within what they did not realize, but the alert will now understand, were unequal and inefficient property rights laws.

But the unearned money which has been spirited away to the safety of bonds has yet to be dealt with. Like the proverbial elephant in the living room, others cannot exercise their rights so long as that beast, appropriated wealth invested in bonds, is still there.

In a complete revolution heads roll, property is confiscated, and new property rights laws are put in place. Considering the French Revolution lasted only 26 years before aristocracy once more ruled, revolutionary changes within Western civilizations has been, as addressed in various chapters of Economic Democracy: A Grand Strategy for Global Peace and Prosperity, 2nd edition, more from four accidents of history than serous overthrows of governing systems.

Those four accidents were: 1) the vast expanses of land within America did not permit establishing openly-obvious aristocratic law, 2) those gained rights blowing back onto Europe, 3) those same gains in democratic rights forcing power brokers to give more rights (usually during economic or political crisis), and 4) the Cold War suppression of the world’s breaks for freedom forced massive sharing of wealth both with internal citizenry as supporters and soldiers and with allies necessary to stop fast expanding socialism.

Within those four political frameworks there were massive numbers of high quality people working to expand rights to all people and many rights were gained. But they are illusory. Shut off the wealth appropriated from the rest of the world, retain the residual feudal, monopolistic, property rights laws, and Western economies would, in the form of a few financial aristocrats and an impoverished citizenry, shrink to the aristocratic structure from which it never really successfully evolved. That, of course, is the potential collapse we are describing in this thesis and outlining a path to a productive and prosperous world economy as opposed to the aristocratic monopoly system powerbrokers will be fighting to preserve.

Throughout those several centuries of struggles the citizenry were told—through the classics we now realize were only justifying a system of theft—that they had full and equal rights and that current property rights laws were structured for maximum economic efficiency. We have thoroughly documented that the monopoly system in place for centuries is inefficient to the extreme and the rights we thought we had attained were only the enormous efficiency gains of technology—of which less than half its potential reached the people—and from the massive wealth appropriated from the periphery of empires.

Up to this point, all losses of unearned wealth due to restructuring the economy were within monopoly capitalism’s laws. By restructuring to utilize Henry George’s mighty economic and financial engines, most citizens quickly came out of the crisis with a quality life and greater security.

Monopolists knew what they were doing when they created those laws, entrenched wealth invested in bonds cannot be legally displaced within current law. We are determined that any theoretical restructuring we do will be within those rules. Therefore we will only describe the problem and leave it up to the newly restructured society to decide how to solve the conundrum of honest investing of unearned wealth within the rules of a corrupt system. With the problem out in the open where it can be studied, the answers can be found.

The problem is rather straightforward: 1) Those huge blocs of capital created through capitalizing annually appropriated values are mixed in with honestly earned wealth. 2) The citizenry from which that wealth was appropriated must pay off those bonds and other investments over and over in perpetuity. 3) Those massive blocs of unearned wealth, needing secure havens for investment, deny society the right to create debt-free money.r 4) The entire process reduces the efficiency of an economy and places it at a disadvantage in trades with efficient economies.s

A large share of the money currently invested in bonds is the capitalized values of wealth appropriated through the monopoly structure. Entrenched unearned wealth is today’s remnant of the aristocratic system sitting there preventing change just as its predecessors have done for centuries. A truly free and democratic society can resolve that problem. Societies that did so were all overthrown or contained—the Soviet Union, Yugoslavia, Cuba (only contained), Indonesia, Chile, and many more—and their leaders branded as dictators and worse. It is enough to point out that, even though under attack and embargoed for decades, Cuba has high-quality universal health care, education equal to the best in the world, their citizenry discuss and vote directly on laws and their constitution, over the next 10 years they will, without charge, return sight to 4.5 million blind Latin Americans, and they have 70,000 doctors working and teaching in many impoverished countries. That is only a snapshot of what can be done through policies of full and equal rights as opposed to policies of monopolization. We assume the citizenry of the newly restructured economy can chart their way past that minefield of unearned wealth honestly invested in bonds and, because a resolution can only be outside of current property rights laws, leave resolving it to them.

There will be derivatives that will, after the shakeout and like bonds, place title to much of the nation’s wealth into the hands of very few people. Most derivatives—$415 trillion worth in late 2007, eight times world GDP—in the ethereal world of high finance are little more than schemes for appropriation of wealth through complex forms of short term titles (claims on wealth). Under full and equal rights, money earned, and thus money spent, matches values created and there are no needs for those shenanigans supposedly insuring investments. Along the same lines as changing the rules when the Hunt brothers had the silver market cornered, which saved the market and came close to bankrupting the Hunts, these unearned wealth accumulations can be, and must be, set aside. The only difference between the Hunt brother’s almost successful cornering of the silver market and entrenched wealth in bonds is that the silver crisis was current and something could be done about that while that appropriated successfully for decades or centuries through exclusive titles to nature’s wealth and technologies is firmly in the name of current owners and there is no way to challenge that under current law. The derivatives problem however, like the Hunt brothers cornering of the silver market, is current and that can be resolved along the guidelines of that previous crisis. Just as the Hunt brothers had to relinquish their claims to enormous unearned wealth, so should those final derivative holders.

Once the principles of full and equal rights are in place under Henry George’s inclusive property rights laws, operation of an economy will be simplicity itself. There need be no taxes unless society decided to fund retirements through payroll deductions and those would insurance premiums, not taxes. With oil, minerals, and communication spectrums included, resource rents and banking profits will operate governments and provide many social services. In a region’s earlier development, socially-created money will finance bonds to build roads, railroads, WiFi communications, water systems, sewers, etc. There are other ways besides financial accountability to assess use of and conserve resources. When built with socially-created money, water, electricity, and natural gas can have low charges up to a proper amount for an efficient home, higher charges above that, and very high charges for excessive usage. A mature economy will fund infrastructure and maintenance from resource rents and socially-owned banking profits.

Keeping the value of one’s currency in line with the currency of other nations is crucial. As addressed above, this requires an international currency with its own central bank, a bank for international settlements under the control of a democratic, federated, world government. Until regions are developed, blips on computers at this World Bank will replace current international trading currencies. While exports and imports are sold and purchased in the international currency, each federated region will have full control of money within their borders. With that national or regional currency having no value outside their borders, their banking systems can create money to build infrastructure and industries and rapidly develop their economies.

As shown by the example of the current American economy—which is at least 50% wasted capital, labor and resources—an economy can, for limited periods, balance anywhere. We have structured our theoretical economies with full and equal rights which will stay in balance forever. Once regional economies are developed and efficient, currency values between regions will balance. Until that time, trade between regions must be managed; that is what trading resources for technology and establishing regional and international currencies were, in this example, all about.

Once each region is sustainably developed, its labor equally as productive and equally paid, all currencies will be relatively equal and could be, and maybe should be, made interchangeable. However, if the dual currency structure is working at maximum efficiency, a democratic world governing body may decide that it is too valuable for controlling cross-border flows of drugs, illegal harvesting of resources, criminal activities, and simply for keeping a finger on the pulse of the world and resolving problems before they get out of hand.

Primary-created money can install WiFi, build bridges, highways, city streets, water systems, sewers, parks, libraries, etc, and, in newly developing regions, initially even loaned to build industry. The circulation of that primary-created money, balanced through higher or lower mandated reserves, will operate the economy. As the economy matures, more and more infrastructure costs will be covered by resource rents and banking profits and less and less from socially-created money.

With full and equal rights—elimination of those monopolies, equal pay for equally-productive labor, sharing those remaining productive jobs, and elimination of plunder by trade6—each dollar of earnings matches each dollar of value in the market. There are no appropriations of what was earned by others so there are no air pockets—those huge blocs of capital created by capitalizing the value of annually appropriated wealth—within the newly-created or restructured economies and thus no inflations or deflations, see footnote, p. 30. A society with full and equal rights, perhaps for the first time in modern history, will have been created. It can be done and any region that first sets that example most likely would be copied worldwide.

For the world to become peaceful, for poverty to be eliminated, and for protection of resources and the environment, something similar to what we lay out has to happen in a seamless web worldwide. With modern communications informing the world, that can happen.

Assuming sharing of technology in trade for access to resources has been agreed upon, a part of the surplus labor and resources within the wealthy world released by the rationalization of monopolized economies—that 50% of their economies which is wasted—should be turned to installing satellite and solar panel WiFi communications throughout the developing world. WiFi installs fast with a minimum level of skilled labor and low-tech regional labor should be trained and so employed.

Investment in human capital is the most productive of all investments. But there are simple and cheap ways to do this (see education addressed just below and in the communications chapter). Labor for intermediate technologies can be trained, should work as apprentices and, when fully trained, take over those jobs. As they are educated and trained, local labor will take over the highly skilled jobs. They will train apprentices who, when trained and employed, will train more apprentices. Under such centuries-old policies, practiced by guilds for centuries—but they, again for the purpose of monopolization, purposely avoided the exponential expansion of skills we suggest, and remembering that in an efficient developed economy employed labor hours do not need to exceed two to three days per week—a skilled labor force can rapidly expand.

As WiFi is being installed, students will be trained to operate their low-cost, personally-owned, school-system-provided, laptop computer. Recorded classes on all subjects will be prepared in whatever is chosen as a universal language, it does not have to be English but probably will be. Those recorded lectures and documentaries will be translated into the languages of each region. If the world community is serious, WiFi installations, recordings on all subjects for all classes, and local scholastic testing stations will be operational within a developing region within five years of a decision to install an efficient communication-education system. Education would be available as fast as WiFi is installed and laptop computers distributed.

As motivated students will breeze through classes at two to three times the speed of brick and mortar schools, first beneficiaries will be ready for college courses before WiFi is fully in place across a federated region. Within 15 years all will be literate, within 20 years a population will be fully educated, and within 40 years their education level will be relatively equal to the best in the world. With tests showing one of the world’s highest scholastic levels, Cuba has already proven this. Venezuela and Bolivia will prove it shortly and other nations will follow.

Simultaneous with establishing a modern educational system, resources will be mapped and power systems, industries, railroads, ports, airports, roads, etc, planned. As energy is the resource in shortest supply, special attention must be given to solar and other non-polluting renewable energies. Permaculture and three dimensional orchard farming will create a secure food base while protecting, actually rebuilding, the soil and the environment.

The money previously spent on war can be turned to fulfilling the agreement to trade technology and training for access to resources. A few crucial factories can be built with socially-created money and others necessary for a balanced economy brought on stream as the population becomes educated and trained. Appendix II outlines how master home builders can be trained and industries built to provide windows, trim, and furnishings.

Those factories, homes, and industries that emerge to provide services, consumer products, and wages to those modernizing that region will be the productive wealth that backs the newly-created money.

Looking to the future, care must be exercised to create high values. Comfortable rammed earth homes with ceramic interiors that will last for centuries can be built for little more than, and in some regions cheaper than, the cost of mobile homes that have a lifespan of less than 30 years.

Driverless, almost risk free, electric-rail pod systems can be built in moderate-to-heavily populated areas that can provide transportation at less than half the cost of automobiles. As fuel prices rise, those energy-efficient systems will be providing cheap comfortable transportation in populated areas throughout the world.7 Heathrow Airport in England will have a test run this year (2008).

The entire process will require management and oversight by a fully democratized United Nations or its replacement. Those alliances are the embryonic formations of a peaceful federated earth. That world legislative body will replace negotiations overseeing the equal sharing of the world’s resources. As opposed to the federation of the United States, the European Union, and China centuries ago, all of which became powerful but internally unequal, a federation of the earth with full and equal economic rights—as we are suggesting—will maintain peace, tranquility, equality, and a quality life for millenniums.t

A very quick summary: Aristocracy’s theft of the land used in common was recognized as theft and fought against. But the unorganized common people were overwhelmed and they became serfs forced to hand over half or more of what they produced to the aristocratic lords of the land. When sheep produced more money than serfs, the enclosure acts gave exclusive title to that later lord of the land and denied the common people even those meager rights. We have documented that half of labor’s production within today’s aristocratically structured economies is still appropriated or wasted.

Each step in the early privatization of the commons was recognized as a theft and fought against. Compliant philosophers, we know them today as the classics, justified that theft.u The principle of amassing unearned wealth through exclusive titles to nature’s resources and technologies was applied to every sector of the economy. As fast as a technology came on stream, exclusive titles were—primarily through the patent system and stock markets but also by license—bestowed on those in position to take advantage of the opportunity. Over time, rental values going to those holding title to natures resources and technologies or a license to practice within a monopolized system—banking, insurance, medical care, law, etc—were accepted as normal.

That those exclusive titles were designed to lay claim to unearned wealth was forgotten and titles and licenses to practice within monopolized systems were accepted as proper. The enormous rewards—your name in history, promotions within the system, very well paid, etc—for producing and practicing a philosophy that protected the system were so great and the penalties—beheadings in those early centuries, today extreme difficulties in finding employment, ostracized to the fringes, and pay almost non-existent—so damaging that few stood up and the pure theft of exclusive titles severely compromising economic efficiency became accepted as highly efficient and any who would suggest different were easily ignored.

That principle of theft of others’ wealth was the very essence of world trade from the beginning and, with the exception of those who were added to that alliance to stop fast expanding socialism (Southeast Asia), still is today.

If a challenging philosophy gained credence it would be suppressed by massive financial and economic power, embargoes or covert and overt warfare. Those massive inflictions of violence were carried out under barrages of propaganda as to those under assault being dictators and genocidal murderers.

The truth of the matter was that, until successfully suppressed, the living standards rose rapidly in each nation that broke free and gained control of their resources and destiny. A massive power structure based upon the theft of others’ wealth did not dare let other nations or their own citizens see the potential gains of economies based upon rights of people to their share of the rental value of resources and rights to the production of their own labor.

The propaganda has been so intense that few realize they could be living a life beyond their fondest dreams while working half their current hours. Under a system of full and equal rights, all would have rights to a piece of land, a home. That home could, through WiFi, communicate with any other home in the world. All could be educated over that communication system to whatever level they wished at almost no cost. Three-dimensional orchard permaculture would permit bringing fresh vegetables and fruits from the garden each day or delivered from warmer climes during the winter. The local mall would carry groceries and small consumer items. At half the price, moderately-priced to expensive items would be ordered over the Internet. Laws and constitutions would be discussed and voted on over that communication system which is participatory-direct democracy. Each person would be electronically identified, eye and thumbprint scans, etc, so there can be no cheating. Privacy aside, a society with full and equal rights would have almost no crime and big brother would have been done away with anyway. Many jobs, recording, accounting, and communicating, can be handled from home.

As monopolies structured within property rights laws are eliminated, everybody has rights to land, rights to medical care, rights to a quality retirement, rights to educate oneself as far as one wanted to go, the right to know of and discuss laws to be passed, the right to vote on those laws, and on and on. Keeping economic activity as local as possible, each federated region of the world, each country, each region of a country, each community, and each entrepreneur has rights to finance capital. Just as inequality has been structured into past constitutions and law, virtually everything required for an efficient, equal, and honest community can be put into constitutions or law as a social right or a human right. The right to a belief, a religion, balanced by a right not to believe, requires a constitutional separation of church and state.

Quoting from our introduction emphasizes how rapidly the impoverished world could develop under the principles of full and equal rights. Even as resources and the environment are protected, poverty can be eliminated in 10 years and a quality life for all can be provided in 50 years:

The infrastructure necessary for the developing world to be efficient appears expensive. But that is only true if built by outside contractors. All costs above resource rent values are labor costs and we thoroughly document that most resources are within their borders and such rents properly go into the social fund, that is Henry George’s primary thesis. Machinery and infrastructure built by a region’s own companies and trained labor creates wealth equal in value to the price of that labor, which is their own, interest on industrial capital, which is stored labor and those factories should be built with local labor, and resource rents which provided the financing came from their regional resources. As labor spends their wages for their living and governments spend resource rents and banking profits to run governments and essential services, all those values, except that spent for imports which, when resources and technologies are equally shared, will be minor, are a region’s circulating buying power.

Train labor, build industries to scale for a region, build construction equipment with those industries, build that infrastructure, and the cost to a region is primarily importing modern tools for those factories. Those undeveloped regions have most of the world’s natural resources and all manufactured wealth is processed from natural wealth. So, although it is necessary that the banking system be socially-owned, developing an economically viable region is primarily creating money to train and employ a region’s own labor force to build the necessary infrastructure and their currency must have no value outside their borders, a dual currency system.v That infrastructure and the wealth produced backs both the newly-created and circulating money and surplus money is easily destroyed by increasing mandated reserves. The circulation of money producing and consuming within the borders of an economically-viable region is the economic multiplier of a prosperous community. Current exclusive titles to nature’s resources and technologies and the many other monopolies copied after those original excessive rights structured within property rights laws deny that simplicity to the world, pp. 12-13 of the Introduction.

Preventing every aspect of this from happening is what wars and struggles of all kinds have been about and they still are today.

Again we must point out that the customs, belief systems, and property rights laws of cultures seldom permit a radical structural change as addressed in this theoretical model. However, it has happened and it will happen again. But those past revolutions were carried out by too few people compared to the power of the countries still firmly controlling the world. Historic power centers did not dare let the world’s citizenry see a society with substantially more rights and freedoms. Much of the history of the past 60 years has been the suppression of just such potentially freer people. This is why we focused on the importance of a large enough share of the world breaking free. Only when their numbers are large enough, through alliances or federating, will a countervailing power be in place that can challenge current powerbrokers and demonstrate to the world a truly free, peaceful, and productive social structure.

Though no one can predict the outcome, a worldwide populist revolt is ongoing. With the dispossessed of one region in full contact with those of other regions, this revolution should be uncontainable. After all, if imperialism cannot militarily contain 26 million Iraqis, how can they contain three billion people worldwide allied together, regionally federated, to become free?

Since all sincerely want peace, we have addressed the possibilities, and the outline, of a peaceful, velvet revolution. We are aware that the world is unlikely to fully break free from the strangle hold of monopoly capitalism’s property rights laws. Other societies have other methods of monopolizing power, wealth and rights, many lacking the economic engine effect of monopoly capitalism. Those systems will be just as difficult to reform as those of the West.

So it will be a long struggle. Some societies may try socialist or communitarian economic structures. For those economies to be efficient, four rules must be followed: 1) Society must collect all resource rents and utilize those funds plus the profits from a socially-owned banking system to operate governments, federal, state, and local, and to build and maintain infrastructure. 2) A socially-owned and operated banking system must create money to build infrastructures and, in the initial stages of development, crucial industry.w Required reserves must be managed (raised or lowered) to maintain the proper level of buying power. 3) Inventors must be well paid and all patents placed in the public domain. 4) Control must be regional and local. Each federated region, each state, each community, and each entrepreneur has a constitutional right to finance capital.x Think of it like your dinner table, none are required to pay rent to sit there and all get their share. All this thesis does is, through applying Henry George’s philosophy across the full economic spectrum, eliminate the monopolization of the bounty nature offers for free and all receive their share.

Those four points are easiest to understand as Henry George’s property rights laws, his mighty economic engine. By fully applying his philosophies, each citizen of this world can have a quality life. Once such a revolution in economic thought has become relatively universal law, the world will have the tools to address global warming, resource depletion, and other problems related to the limitations of our small planet.

We repeat: This is not a prediction of what will happen or even of what can be easily established. It is only a guideline pointing out it can be done if the world’s powerbrokers would set aside their quest for personal wealth and power and develop visions of a fully, or at least a further, developed humanity. Our very survival depends upon it.

Because of the belief systems imposed upon the masses of all societies protect power and wealth, they cannot, until the system collapses and they and their children are cold and hungry, join together to gain their freedom and full rights. The failings of all those belief systems are their laws not being structured to efficiently and equally distribute the wealth processed from natural resources.

Henry George provides us those guidelines, society collect the rental values on nature’s wealth and technologies and the essentials of a quality life beyond that produced by society’s normal subdivisions of labor, health care, retirement, insurance, etc, legislated as a right and those rights funded through social collection of resource rents and socially-operated bank profits. It is all possible, let’s do it.y

Footnotes

1. France would not agree with U.S. President George W Bush on attacking Iraq. But that was because, with centuries of colonial experience, they knew better than to openly occupy a country to install a puppet government. The current (2003-08) quagmire in Iraq proved them right. But, until another world order emerges, the entire European Union and America should be considered an allied imperial center of capital. Back to text
2. That is, unless monopolists find themselves trapped. Then they lobby the legislatures for relief. Back to text
3. This highlights why economically viable regions must have currencies viable only within their borders. Powerful imperialist nations destroy the value of currencies of all periphery nations who attempt to break free. Back to text
4. See Tikopia Island in Jared Diamond’s Collapse: How Societies Choose to Fail or Succeed, 2005. Back to text
5. Many see a fully developed world as destructive to the environment. With care in planning and elimination of the roughly 50% of today’s economic activity that is wasted, the ecosystem can be well protected. Tiny Tikopia Island, addressed above, has successfully practiced three-dimensional orchard farming for 3,000 years. That permaculture mixing of annual and perennial tubers, berries, vegetables, fruits and nuts is enormously productive and, due to that closely-planted mixture building its own defenses, essentially free of disease and destructive insects. Under such advanced permaculture, one’s yard could produce a large share of a family’s food needs and sharing between neighbors will provide variety. If the world replaced monoculture farming and shipping from hundreds or thousands of miles away with three dimensional orchard permacultures in back yards and surrounding communities, society could be living in a Garden of Eden continually improving soils as opposed to its rapid depletion under monoculture farming. Back to text
6. Two pages below we will be discussing how the monopolized American economy was saved from collapse at least six times over the past 30 years by the government using its money creation powers to keep bankrupt sectors of the economy from collapsing the entire economy. A recovery from the collapse of the monopoly system envisioned here, caused by equalizing production and trade worldwide, will require a simultaneous abandonment of that system (which we are taught does not exist). Back to text
7. We tried to make this a synthesis of capitalist, socialist, communitarian, and Henry George property rights law. The inclusive philosophy of Henry George blends the essential principles of all three. The dynamism of capitalism and the justice and equality sought in other philosophies are retained. Back to text
8. Run a search for “Plunge Protection Team.” After the financial collapse of 1997, South Korea invested heavily in education and leading technologies and they are recovering. Those efforts are replays of Germany’s and Japan’s historic and intense investments to break past Britain’s and America’s patent monopolies. Our suggested approach to modernization of the undeveloped world are only such policies applied cooperatively regionally—even world-wide—as opposed to competitive investments in individual nations. Back to text
9. A socially owned banking system can be balanced anywhere from highly efficient, to massively corrupt, to its current extreme monopolized inefficiency. The world economy is just as unbalanced as national economies. Debts between, and within, all nations will have to be renegotiated along the lines of renegotiating debts within America as we are addressing. This will be a huge effort but, as demonstrated by this simplified example, it can be done. Each nation or region will have to operate their economies with a new currency as they renegotiate contracts and debts with all other nations and regions denominated in a planned world currency (a dual currency structure). Sacrifices will be required by all. Back to text
10. Those calculations will come up against the appropriated wealth bond problem discussed below. Allied or federated regions of the undeveloped world, creating money for both infrastructure and industry, will require higher mandated reserves. Back to text
11. This will take a full restudy of nutrition and drugs without input or interference by food or drug companies and providing the citizenry with the knowledge to take control of their own health. Remember deaths go down when doctors go on strike. Both deaths and food costs will drop rapidly when the processed food craze is understood as a primary cause of diabetes and heart disease (transfats) and avoided. Back to text
12. Land as the mother of all monopolies is obsolete. This treatise proves that monopolization of both banking and technologies are equally as powerful and damaging to an economy. We have addressed above the elimination of the monopolization of technology as the key to developing the impoverished world. Thus patent monopolies have adverse effects equal to either land or banking monopolies. Back to text
13. The simplicity of inflation and deflation control proves that inflations were due to conscious decisions. An example is the 2002-06, housing bubble. Money had to be created to buy and sell those doubled values. It is well understood that borrowing against the values created by the housing bubble was the buying power that rescued the stock market which had collapsed 40%. So that housing bubble was a planned event utilizing created money to rescue the stock market which only creates another imbalance that has to be weathered. All such maneuvers protecting power and wealth disappear when an honest banking system fully funds the real economy and the many games in the ethereal world of high finance intercepting massive wealth are history. Back to text
14. In either case it is possible to create money for both infrastructure and industry and control the consumer money supply through higher mandated reserves. As the many possibilities leave monopolists out of the loop while maintaining the efficiencies of money, required reserves has been little used within the American economy. This author’s calculations are that these options will, valued in productive labor units, lower product and service costs by half. There is nothing stopping socialist or communitarian philosophers from inserting the efficiencies of Henry George into their philosophies. Back to text
15. In the crisis of the 1930s, the legislators were just that frightened which is what permitted the passage of many laws giving Americans rights taken for granted today (Social Security, Unemployment Insurance). Back to text
16. The powerful have established many blocks to changes, constitutional and legal, into their property rights laws. But a if an alert leader can quickly provide security to a cold, hungry, and panicky citizenry with promises of total security for the foreseeable future few legislators or judges would dare stand against it and national referendums will override those hold outs. Back to text
17. Bonds and treasuries held by financial institutions of other countries will require negotiation. A just settlement will require sacrifices from all parties. Back to text
18. Money can still be created but that excess money supply will unbalance investment markets just as is happening today. The massive levels of created money today would appear to discredit this position. But that money is being created for all the wrong reasons, wars and protection of the monopoly system. Back to text
19. Those disadvantages being resolved for centuries through worldwide control of resources and the wealth producing process are addressed in this author’s Economic Democracy: A Global Strategy for World Peace and Prosperity, 2nd edition. Back to text
20. Note how the elimination of monopolization of technology permits the rapid and low-cost development of poor regions of the world. Protecting the many forms of monopolization has been the cause of war and poverty throughout history. Even our earliest forefathers were battling over resources (territory). It is time to eliminate all forms of monopolization and share this world in peace. Back to text
21. In A Perplexed Philosopher, Henry George describes how Herbert Spencer, the leading thinker of the late 19th century believed fully in society collecting land rent. He simply was not let back into polite society until he recanted those views. That peer pressure has successfully kept the system protected for several hundred years. Most professors and intellectuals know in advance they will be ostracized if they seriously challenge the fundamentals of the system. Those who do challenge are marginalized to the fringes. It seems only revolutions break through firmly entrenched belief systems. Back to text
22. The most knowledgeable authority on money I know, and for whom I have the highest respect, Michael Hudson, says, “The Euro cannot fully operate as a reserve currency because the European Union does not have the power to tax.” But a properly structured fractional reserve banking system creating money for infrastructure and essential services and controlling the money supply of a productive economy through increasing or decreasing mandated reserves establishes a reserve currency much more efficiently and effectively than the power to tax. Back to text
23. Actually all infrastructure and industry can be built and maintained with created money and mandated reserves can be raised high enough to maintain stable, as opposed to inflationary, buying power (a socialist’s dream). But such an economy would have no finance capital amassed from savings (so stored labor would not be paid) and no financial or efficiency accountability, so we stayed with Henry George’s mighty, and accountable, capitalist economic engine. It could just as easily be designed as a socialist or communitarian economic engine. Back to text
24. For a longer list see Hal Logan, The Coming Age of Economic Democracy, forthcoming. Back to text
25. I wish to thank my readers. If one takes notes on how each of these rights is attained, you will have the foundation to write this same story from the perspective of rights and human rights. As you will recognize, simple as they are, the concept that the problem is in property rights law is currently out there within capitalist philosophy only under Henry George’s work. Though there are many ways these ideas can be expressed, those rights can only be attained by restructuring current property rights law. Eliminating the monopolization process is the only way we will eliminate poverty, stop global warming, and all else that must be done for a quality life for all. Lets do it. Back to text

Endnotes

1. Alfred W. McCoy, A Question of Torture: CIA Interrogation from the Cold War to the War on Terror (New York: Henry Holt and Company, 2006). The list of books on this subject is long. A keyword search will come up with most of them. The reason for such a terrorist foreign policy can be found in this book, this author’s Economic Democracy: A Grand Strategy for World Peace and Prosperity, Steven Hiatt, Editor, A Game As Old Empire: The Secret World of Economic Hit Men and the Web of Global Corruption As (San Francisco, Barrett-Koehler, 2007), Chalmers Johnson, Nemesis The Last Days of the American Republic (Metropolitan Books, New York, 2006), and other books exposing capitalism’s insatiable effort to control of resources and the wealth producing process. Back to text
2. Ian Bremmer, “Who’s in Charge in the Kremlin” World Policy Journal (Winter 2005/06), p.3. Back to text
3. Taylor, Fall of the Dynasties, chapters 17—19. Back to text
4. Lester C. Thurow, Generating Inequality (New York: Basic Books, 1975). p. 149. Back to text
5. Ibid, p. 154, (emphasis added). Back to text
6. Smith, Economic Democracy: A Grand Strategy, Back to text
7. keywords: PRT International, LLC, John E. Anderson. Back to text

This is a chapter from the book, Money; A Mirror Image Of The Economy. Visit that link for more information about the book.