State Power vs Money Power
Posted by Orrin Woodward on February 15, 2016
In today’s capitalistic society, money is power. The more money a person has, the more choices and resources available. Initially, money was simply the most marketable commodity within society. If Tom raised chickens and had extra eggs, he sought to barter the eggs for another item he desired. Mary, for instance, may have wanted to purchase eggs, but Tom did’t need the woman’s bracelet she offered in return. Barter of commodities, then, required both parties to want the others person’s items and in a quantity that made the trade possible. This, however, was not normally the case which made the exchange of goods a laborious process of seeking someone who desired the item you offered in exchange and vice-versa.
Fortunately, some entrepreneur in ancient Lydia solved the barter dilemma by coining electrum (a natural occurring mixture of gold and silver) that was desired by nearly everyone. This changed the bartering process forever. Now, even through Tom didn’t want Mary’s bracelet, she could still get eggs for breakfast. How? Mary simply exchanged her bracelet to a willing third party for the electrum coins that she knew Tom would happily accept in exchange for his eggs. The electrum coins of Lydia, without exaggeration, launched classical civilization into its golden age. Thereafter, trade expanded across the classical world as the coins made the exchange process so much simpler. All exchanges, interestingly enough, are still a form of bartering with the specific commodity now being traded for an agreed upon quantity of coins (money is simply the most marketable commodity). All the other commodities in society were subsequently valued by the free market in the quantity of coins needed to purchase them.
Although free market entrepreneurs developed coins (commodity money) and exploded societal wealth, its important to remember that the ruling elites are not interested in societal wealth, Rather, they are interested in increasing their wealth and power. Accordingly, commodity money was viewed as a threat to the elites’ power structure because society’s members could now exchange goods freely and increase wealth with minimal State involvement. This was unacceptable. The elites, predictably, used the State’s monopoly of force to capture the money supply within society to increase their power and control. After all, power is maximized when the monopolization of force and money is maximized. Classical historian Augustus Boeckh recognized this when he noted, “The intellectual faculties however are not of themselves sufficient to produce external action; they require the aid of physical force, the direction and combination of which are wholly at the disposal of money, that mighty spring by which the total force of human energies is set in motion.” Not surprisingly, the ruling elites (kings, aristocracy, and bankers) quickly seized control of the money supply and use this explosive new innovation to enhance its own power.
This theme, strikingly, seem to repeat over and over in recorded history, namely, elites dictates over what society creates. In this case, the elites dictated the money supply that society’s entrepreneurs created. Curiously, the story of money isn’t as simple as the elites defeating the masses of society for increased power. The truth is actually more complicated. For the elites divided into two groups and battled over the next millennia for control of the money supply. In one corner stood the public State Power. It sought to use its “monopoly of force” power to control the money supply and dictate the value of money. In the other corner, however, stood the private Money Power. It sought to use “fractional-reserve-banking” (FRB) to control the money supply and bribe the State to use its monopoly of force to ensure it’s “lawful” control. Society’s masses, regrettably, were in a “heads you win and tails I lose” economic quandary.
The historical record reveals the private Money Power defeated the public State Power game/set/match. As a result, money across the civilized world is now in the hands of private central banks that back the Big Banks practicing fractional-reserve-banking to manipulate each nations money supply for its gain and society’s loss. The author has termed the private Money Power’s control over the banking system and money supply the Financial Matrix – a system of control where the Money Power creates money out of thin air to loan to society’s members for profits and control. The money elites generate massive profits by loaning out fake money and then collecting interest and principle payments on the loans. The State, corporations, and people are all trapped in the Financial Matrix and are enslaved just like the Bible describes in Proverbs 22:7, “The borrower is slave to the lender.” The final fruit of the Financial Matrix equation is pain. For once the borrower has indebted himself, he experiences the pain and stress of paying off the debt with compound interest working against him. The control and profits, in a nutshell, go to the Money Power while the pain and stress of go to the debtors as they unknowingly sell themselves into slavery.
Perhaps an example of the process will help. Suppose a person desires to purchase a house for $100,000 and has 20% ($20,000) for a down payment. The bank does not have to use its existing deposits, but rather merely creates a mortgage loan for the $80,000 (not including other closing cost) to be paid back monthly with interest. If they person pays monthly for the next 30 years at a 6% interest rate, he will end up paying nearly twice as much for the house as what it is actually worth. The bank, in other words, is allowed to create the loan out of thin air but the borrower must pay back nearly twice as much in dollars earned by sweat-equity real production. To add insult to injury, if at anytime the borrower does not pay, the bank uses the State Power to foreclose on the loan and receive the property in collateral. Although the bank created the mortgage from nothing, it receives something in return – either the monthly payment or the property. Either way the bank receives something for nothing because of its State protected special arrangement.
I suggest the reader do something about his/her debt. That something is to get serious about escaping the Financial Matrix through utilizing the techniques taught within LIFE Leadership‘s Financial Fitness Program and my Financial Matrix book. Imagine what a debt-free lifestyle would do to alleviate pain and stress in one’s life and how awesome it would be to pass these principles onto the next generation. The future belongs to those who boldly go in the direction of their dreams!