The Real Cause of the Economic Catastrophe Facing the World
By Damon Vrabel Wednesday, May 12, 2010
Please, let us stop this usury! – Nehemiah 5:10
It’s been a wild couple of weeks—increasing unemployment, Greek debt crisis, yet another ridiculous bailout, pressure on Goldman Sachs, accusations of commodities manipulation by JP Morgan Chase, and new freakish levels of market volatility that might be signaling the next phase of market collapse. The many day-to-day issues can leave us dazed and confused, so most people ignore them. Huge mistake.
They are all related to the most powerful force on earth that controls our lives because it is the very foundation of our society—usury. We are ruled not by governments anymore but by financial powers that use interest-bearing debt to exert control over governments, corporations, and people. Almost all other political issues with which we concern ourselves are secondary symptoms of or purposeful distractions from this larger narrative that is never reported by the Wall-Street-funded media. Sadly the church has remained silent as well.
Explaining the details can be extremely complicated, but the basic core to understand is that the US government issues no money. Instead all money comes from private banking institutions with interest attached. At times in the past the US government issued real money for people to use—US notes and coins. But today all money comes from the Federal Reserve’s private banking system by putting the US government, i.e. 308,000,000 Americans, in debt. If the US government were not in debt to the banking system, the American people would have no money.
More technically, the Fed and its Wall Street cartel banks like JP Morgan Chase and Goldman Sachs make billions by doing nothing but controlling our money. They have the monopoly license to create the core money in our system from holding US Treasury bonds on their balance sheets. These bonds represent the debt of the United States. Thanks to interest, the bonds pull a large portion of our wages to the banks. The primary purpose of the IRS is to take your wages to pay the interest back to the banks. In effect, Wall Street owns a good bit of your labor. And the more bonds they hold, i.e. the more debt the population is in, the more money they make thanks to the interest flows and the profits from gambling on your debt. The system is very much one of “us vs. them.” Such is the nature of monopoly power and usury.
Economics and Morality
Controlling others and living off their backs by forcing them to borrow with interest in order to have any money is called usury (this does not include standard, self-liquidating bank loans to businesses to fund production). It is a system that ensures everything we do, whether in the public or private sector, feeds Wall Street and the controllers above it. It creates a two-tiered societal pyramid of money pushers on top vs. money users on bottom. The power differential is huge. Everyone is hostage. In doing something as simple as buying food to survive, we contribute to usury because we only have usury-based money, not real money. Like the slaves who built the Egyptian pyramids, today we are stuck building an invisible pyramid of monetary power.
In such a system there is never enough money to pay back all the interest to the money pushers. The only solution is for the money users—government, corporations, individuals—to borrow more. This is the reason our debt continues skyrocketing to increasingly insane levels. It isn’t about politics, but the fundamental exponential math underlying the system—the users must borrow more and more to pay back interest and keep the system afloat. Such math is guaranteed to fail. Iceland and Greece have reached the point of failure. The rest of the Europe and the US will experience failure as well. Then we will see money and assets vacuumed up the pyramid by the money pushers—the banking establishment that owns the collateral and can take your property.
The exponential math not only creates exponential debt growth, but also exponentially increasing:
- Scale – government and businesses keep getting bigger; we get smaller and local communities lose their meaning
- Velocity – the hamster wheel keeps spinning faster; human life suffers
- Consumption – we buy more and more things that break more quickly
- Production – we make more and more things that break more quickly
- Inflation – the dollar buys less and less; we can’t seem to make progress
None of these things have to happen in an economic system. They only happen in ours because of debt-based money, usury, that greatly benefits the top of the pyramid while everyone else suffers to a certain degree depending on their level in the pyramid.
So this system is guaranteed to fail due to not only the impossible math, but also the fundamental immorality. Taken together those five issues paint a horrible picture. Republicans blame Democrats and vice-versa. Nope. It’s all a very simple result of a system based on usury, which used to be considered profoundly immoral. It was a fundamental violation of every major religion. It still is for Islam, but Christianity succumbed long ago. They thought a free market economic system would be beneficial, but got snookered into thinking that usury had to be part of that system. On the contrary, monolithic usury kills the free market.
Our monetary system is a top-down controlling machine, not a free market. It is run not by government, but by the most powerful financial interests in the world. Some people feel in their guts that someone must be stealing from them because they just can’t get ahead no matter how hard they work. Well that’s because it’s true—someone is legally stealing from them. The simple math of usury pulls money from people on the bottom of the pyramid who create real value toward those at the top who create no value. MBAs and others serving the system must reckon with this truth rather than remaining blind. Farmers understand it well, having lost their property over the years to the bankers. Families feel it in the fact that it’s difficult to get enough money to feed the kids compared to 50 years ago when one parent could work a standard week and feed a family of five. Everyone in the system will feel it once the debt system collapses as it is doing in Greece.
Living off the backs of others was called feudalism 300 years ago. It was slavery 100 years ago. Today it’s called the “free market” thanks to the propaganda and fraud of neoclassical economics. It completely ignores the truth of our monetary system, the math behind it, and the eventual collapse that will result from it. Greece is giving us a glimpse, but it is only a mild pre-game warmup compared to what’s coming. The world will rue the day it was ever seduced into accepting usury and the illusion of prosperity driven by nothing but debt.
The Irrelevant Church
On this issue of monolithic usury, the issue from which many of our other problems spawn, the church seems to have no voice. Recently, an older church leader told me, “Keep it up, this needs to be addressed, but you have more guts than me, I don’t want to be killed.” Sobering comment, to be sure, but in the shadow of Gandhi, Dietrich Bonhoeffer, Oscar Romero, and Martin Luther King, is the church now impotent? Are its leaders now too afraid to speak truth to power, to stand against darkness? Or is the problem that the church is, like most of us, fooled by the myth that we live in a free market so we don’t realize we are immersed in an immoral system of controlling usury?
Lower class Greek citizens are now learning the painful truth about the mythical free market. A few of them have died as the police brutally repress them to enforce the usury system for the rich bankers like Goldman Sachs. Where is the voice of Bishop Romero? “I order you, stop the repression!” Iceland learned the lesson a few months ago. Several other populations have learned the lesson in the past as the controlling debt peddlers punished, conquered, and restructured their countries (Indonesia, Malaysia, Thailand, India, Argentina, Chile, Mexico, England, etc.). The same lesson is coming to the rest of Europe and the United States. But again, the church seems to be oblivious. It failed to heed Martin Luther King’s warning, “One of the great liabilities of history is that all too many people fail to remain awake…today our very survival depends on our ability to stay awake.” The church has fallen asleep.
The Dialectic of Left vs. Right
A possible reason is that the church has been co-opted by the manipulative left vs. right civil war created by the corporate media. In fact, Protestant denominations have split into conservative vs. liberal camps so they war against each other—Wall Street is brilliant at divide and conquer. Some sermons in conservative denominations sound like speeches from conservative politicians. Liberal Christian magazines sometimes seem to be just liberal political magazines with an added dash of Jesus.
Postmodernism should inform us that the left vs. right narrative is contrived to keep people from noticing the real power structure behind Wall Street that controls our lives. As long as the church submits to the false framework, church leaders will be “safe.” But that means they will also be irrelevant because they are not speaking to the primary narrative in our world that has always caused problems and is getting ready to unleash far more pain and poverty in the near future—the issue of monolithic usury and debt servitude. By not speaking against usury, the church has become a pawn of it. So the church has largely been conquered by the same concocted civil war that has divided society.