A short story of everyday
The main problem in democracy is that there are 2 layers; The visible and the invisible one:
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Visible society: Democracy.
That’s what we know or what the average citizen can acknowledge. That includes the democratic system and the institutions we believe represent us and it also includes the visible side of the economy and markets; trade of goods and services, income and expenditure.
Invisible society: Financial system.
Beneath the visible section of society as we know it there is the strong funding mechanism operating the upper layer. How money is created and how growth is manufactured through debt.
In the beginning there was trade. People would trade their goods and services with each other, they would swap animals for tools, etc. Eventually there was the need of a currency to represent purchasing power; first it was salt due to the scarcity and the lack of food preservation, salt would maintain food (that’s why it’s called a salary) then coins. Coins made of silver or gold lasted for a long time and it mainly had the face of the emperor or the rulers of that particular place/region who had the military power to conquer other cities always in the chase for growth… People loved gold coins but eventually crime became an issue as for some it was much easier to steal gold coins than to work hard to get them. That was when the first banks in modern civilisation were created, providing a vault (safe) to keep your gold coins safely, a simple storage service with security facilities. You would pay for the service just like hiring any other professional and just like any other business they would provide you with a receipt for the amount of your gold they kept there. A piece of paper telling you how much of your gold is there, casually called an IOU (I Owe You) in Europe and America (1).
Time passed and soon there were a lot of people with a lot of receipts and they started trading with those. Banks were bigger and the demand for those receipts was rapidly growing. Banks had the amazing idea to loan those receipts in exchange of a fee (1), interest fees, something that was called USURY by the Catholic church or immoral monetary gain as they believed that no one could sell time as time belonged to God. However thanks to the protestant reformation mainly protected by British King Edward VI, charging interest fees and providing loans with financial papers became the norm.
The gold race created wealthy investors and a rush for growth, power and control. Eventually the amount of receipts from different banks became a problem in the economy, we needed the same type of receipt for everyone which lead to the creation of a national currency regulated by a national central bank or a reserve bank. This national currency is what we call money today.
England at that time was the Great Britain Empire, The Bank of England, the world’s 8th oldest bank was one of the first to develop the ideas of a centralized national bank to hold and secure the nation’s wealth. They colonised countries all over the world taking down democracies, kings and leaders, sometimes decimating indigenous and local tribes, a sad story that deserves a page on its own. Along with all of that the industrial revolution was starting to boom. England funded wars that would slow other emerging industrialised economies like the Paraguayan war for example that killed 90% of the men leaving the country with only children and women.
Behind The Empire of the 18th century there was a family of 5 brothers, bankers who invested in Gold fixing and government bonds in different countries in Europe; Germany, Austria, England, Italy and France, developing a network of agents, shippers and couriers to transport gold across war-torn Europe. Their fortune was used to fund many wars including the Napoleonic and British wars. The family network was also to provide them with time, political and financial information ahead of their peers, giving them an advantage in the markets and rendering the house of Rothschild still more invaluable to the British government (1). Some call this multinational network the beginning of the secret services and secret agencies. Meanwhile in the US a central bank was created on 1913’s Christmas eve, The FED allowing 13 private banks including JPMorgan Chase to control the nation’s finances which played an important role during the American War efforts (2) preparing for World War One.
During WWI from 1914 until 1918 there was no economic flow therefore countries needed to fund war with what was left from tax or by using their gold reserves to back their war debt, the Allies spent U$147 billion and the Central Powers $61 billion (2). For example, 30% of Australia’s WWI budget was funded by TAX the rest was borrowed or raised by selling war bonds with low returns for the purchasers. Australia’s GDP declined by nearly 10% during the war period. WWI was one of the biggest gold transfers in history (1). After the war ended on September 12, 1919, the Bank of England tried to re-establish London as the centre of the market in a meeting at the Rothschild’s wooden office (3), the benchmark set in that meeting is still being used today.
The aftermath of WWI saw severe economical issues in all countries involved, people were divided into clans seeking political beliefs. England (Great Britain) saw inflation rise more than double and the economy lost 60% of consumers (1), desperation rose German nationalism and America saw the beginning of the great depression due to the FED tightening monetary policies (2) in early 1930’s.
FDR’s “New Deal” changed the Gold standard (3) and introduced a series policies that reduced corporate profits, bringing prices down, introducing social welfare and boosting economic growth. Franklin D. Roosevelt (President of US from 1933 until 1945) believed in direct democracy where people could vote for each issue through public opinion on a polling system (surveys). Once he said in a speech: “I believe in the initiative and the referendum, which should be used not to destroy representative government, but to correct it whenever it becomes misrepresentative”. (4) — He knew the strong hidden forces behind democracy but he believed in the rationality of public opinion.
FDR’s “New Deal” had a strong government with social focus, limiting financial institutions and businesses. This was a dream for the average citizen, it ensured jobs, low prices, stability and social justice, in fact unemployment plunged from 14 to 4%(1) but it horrified big businesses who wanted more power and control. CEO’s in America founded the National Association of Manufactures and started ideological warfare with the “New Deal”. They hired Sigmund Freud’s nephew Edward Bernays to come up with propaganda campaigns using his uncle’s theories of psycho analysis to manipulate the general public creating what we call today public relations or marketing. These campaigns worked against Roosevelt’s idea of democracy in an attempt of control for the Status Quo or the very few rather than by public opinion.
The 4th Estate, mass media, gained significant power then. In 1939 in New York, hired by General Motors, Bernays created a big fair called “Futurama” (1) where people could see the potential of the free market and how corporations could design a beautiful and technological future if companies were connected to government, capitalism with democracy, in other words capitalism IS democracy. Companies would respond to people’s desire for consumption in a way the governments never do. The idea was to switch the role of people from active citizens to passive consumers because this according to Bernay’s was the key to controlling a nation. People aren’t in charge but people’s desires are in charge. Human subconscious mind would play an important role in the exchange of power within democratic systems by pushing ego-based thought and lack of media literacy and educational background, turning democracy into a simple theater.
FDR’s “New Deal” inspired the German National Party though, a super powerful government that new how to use propaganda the same way as Bernay did to get the utmost feeling of post-war dissatisfaction which lead the German people to irrationally support political fascism through the belief of hatred and a mixture between hope and despair. The horrible evidence found in the death camps showed the power of human irrationality which fed World War II and strengthened the hidden forces behind democracy (BBC Century of the Self — Adam Curtis — 42’).
After WWI, the Bank of England and the FRS (Federal Reserve System) along with other financial institutions including JPMorgan Chase established absolute control over the financial system of a defeated Germany (1), giving loans to countries so they could rebuild the damages of war. The total amount of foreign investments in German industry during late 1920’s amounted to almost 63 billion gold Mark as a result of war German industry was in second place in the world attracting investors from all over the world who would buy government bonds and shares from companies like The Rockefeller “Standard Oil”, Morgan’s, through “General Electric” who also controlled the German radio and electrical industry via AEG and Siemens. Corporations bought by financial conglomerates growing significantly. Growth was so rapid that the Rockefellers created a Bank in Germany called Dillon, Read & Co recently bought by Swiss UBS simply to manage growth.
World War II ended up being funded by financial conglomerates and big investors from both Europe and North America. A highly profitable business plan, a money machine. Pearl Harbor attack in 1941 happened after the US cut the Japanese oil supply (978–0307739742.) during the war between Japan and China over Taiwan. WWII killed nearly 55 million people, resulted in 2 atomic bombs in 1945. After reoccupation of Japan, the Bank of Japan suspended all activities, and temporary military currency was issued, the bank was again restructured and the country signed the Treaty of San Francisco (2) in 1951 promising to pay for war reparations. Today Japan’s national debt is at 221% of the GDP, impossible to pay back (3). Japan is one example of the result of war, winner and losers had a big bill to pay in the aftermath.
75 years after the second World War planet Earth owes more than $200 trillion (1) to financial conglomerates; a system that is controlled by the few people and it is perpetuated by public desire. A system that does not stand for people or nations, does not stand for our fauna or the environment. Personal debt is just as high as national debt, propaganda is the heart of economic growth as it transfers the responsibility to people when they choose to fulfill their desires therefore falling into the debt trap either from banks or credit cards, a mechanism that relies in the ability of private banks to give loans, banks that are owned by financial conglomerates and holdings simply because at some stage they had the power to control the economic flow through stock markets or gold fixing.
The last wars in the past 20 years publicly had one main goal; to spread “democracy” across the globe, through either military wars across the middle east or economical wars in Australiasia and European markets. Coups over Central and South American countries, such as Brazil’s military dictatorship in late 60’s, Honduras just recently, Venezuela, Bolivia, Chile back in the 70’s and recently Brazil again with the impeachment of elected president. Today the system sits in the marble walls of Wall Street aiming new markets and creating bubbles like the global crisis in 2008 sustained by a propaganda machine that perpetuates people’s desires for consumables and Oil.
A representative system where people are mere consumers and politicians straw man, realistically leaving big decisions to big businesses and financial conglomerates, boosting consumption of natural resources thus recklessly polluting the environment and the objective reality, our habitat. A democratic system that hides a global establishment of powerful entities real life kings and queens. The global struggle we see today in many nations is the result of a Machiavellian business plan that has worked, using wars and coups all over the world, a fear-mongering media pushing the agenda of separation and division, citizens incapable of formulating their own ideas due to inconsistency in education and the distractions from the entertainment machine, manufacturing public consent to push the agenda even further.
Debt can be beneficial and growth is necessary as it can help quality of life, however, humans are slowly losing the plot and falling inside of a big growth trap simply because this story has never been told, the story of the mechanisms that control the invisible chains that imprison our fellow human beings; DEBT. George Orwell suggested in his book 1984, a machine disguised by democracy that preaches WAR is PEACE, FREEDOM is SLAVERY and IGNORANCE is STRENGTH in a world where everyone believes in the same religion; MONEY.
All hope is not lost though. Debt-growth created a prodigy; technology. Today we have the tools to connect the whole world share ideas and solutions like never before. We can manage global resources and get scientific analysis of the planet we live in, deepening our understanding of the universe and of ourselves avoiding self-extinction by capitalist consumerism. Breaking through the plots of big industry and enlightening the masses to use technology to return to true democracy by informing and surveying the masses through social media for example. The next step in human history will be to go through the 4th industrial revolution which has already started digitizing human knowledge and culture. A new system now operates in data centers as the core of human collaboration, collecting information from the masses soon generating complete automation of our global society under a self-managed Artificial Intelligence which will slightly change the purpose of human civilization. The question then will be; Who will be in charge?
Thank you Taras Voevodin for proofreading.