Capitalism is not broken. It is working all too well, concentrating money in the hands of the few by exploiting the work of the many.
Runaway climate change, war, mass migration, widespread poverty and ever-increasing authoritarianism are the inevitable results of an economic system that rewards corporate actors for their absolute commitment to profit, regardless of the broader consequences. Fifty years ago, on August 15, 1971, President Richard Nixon announced that the U.S. government would cease honoring its pledge to pay gold to redeem the dollars held by foreign central banks.
Nixon declared he was taking “action necessary to defend the dollar against the speculators.” But there was no way to defend the dollar against politicians. In August 1971, President Nixon took his top economic advisors to Camp David. Over three days, they made the radical and momentous decision to cut the dollar loose from gold. In the process, they unilaterally changed the whole global monetary system. President Nixon decreed that the US dollar would no longer be redeemable for the gold owed, even to foreign governments.
Richard Nixon’s decision to delink the dollar from gold, announced without warning, remade the global monetary system in an instant, thus, the Dollar became a fiat currency, something which possessed value solely because politicians said so. This new system created a new type of Slavery in the 21st Century, a Economic one. The story that has emerged is one of greed and corruption and this is just the start of the deception.
It is vital to understand that the banksters create money through lending, it did not exist until the customer agreed to take on the debt. The bank simply created it out of thin air by tapping some numbers into a computer and updating the account ‘balance’ of the borrower. They never physically held the money to lend in the first place, it exists only in their digital ‘financial system,’ not in reality.
What’s worse is that at least 97% of all money (Fiat currency) is created this way. It is a scam. The truth about money, you are not supposed to know, is that it is created virtually from nothing. Some people, we call bankers, are effectively licensed to print money (digitally.) This is legalised usury and it gives them immense power. When I say ‘banksters’ I’m not talking about your local bank teller or branch manager, nor even the rank and file executives or city floor traders, I am referring to the beneficial owners and major shareholders of the banks.
In particular those who own central banks because, despite what we are told, they are privately owned. With unlimited wealth at their fingertips the banksters form the core of the global elite as a result. They operate a kind of global ponzi scheme which, while not illegal under international law, has all the attributes of a criminal enterprise. It is not without justification that these individuals can and are referred to as banksters.
It should also be noted that their influence over the judicial system is also without limit. While the establishment they lead don’t want you to understand any of this, occasionally their representatives inadvertently let the cat out of the bag. Mervyn King, the former governor of the Bank of England, speaking in 2012 said:
“When banks extend loans to their customers they create money by crediting money to their customers’ accounts.”
However, once the bank has conjured the money out of thin air, the debtor (victim) still has to go and earn that equivalent amount, by selling their labour, in order to pay it back, plus interest. For every Dollar, Pound or Euro they pay back, the bank adds that to their own ‘liquidity’ and proceeds to lend at least ten times that amount out to their next victim.
This means, in effect, the customers work for the banks but are never paid. The customers are the bank’s debt slaves. It is no coincidence the etymological translation of ‘mortgage’ is ‘death pledge.’ One of the consequence of irredeemable currency is that it created capitalism, which in turn created poverty on a global scale. Capitalism creates the opportunity to force human beings to labour for little more than subsistence and has generated slavery across the globe.
Recent research by OpenDemocracy shows that slavery plays a crucial role in modern capitalism and inevitably the working class are the livestock from which the capitalists bankers feed. Governments are as willing as they ever were to let the capitalists profit and to stuff their pockets with subsidies. Check out the videos below for more information.