The Financial Matrix
For over twenty years, I have researched the political, economic, and social histories of Western Civilization and have arrived at some startling conclusions. Perhaps the biggest is that the aristocratic elites of every generation have sought a control matrix to exploit the production of the masses. This may appear radical the first time one hears it, but please hear me out. For the famous French political philosopher Bertrand De Jouvenel said similarly when he noted, “Whoever does not wish to render history incomprehensible by departmentalizing it – political, economic, social – would perhaps take the view that it is in essence a battle of dominant wills (elites), fighting in every way they can for the material which is common to everything they construct: the human labor force. (masses)” (parenthesis mine) In other words, the the aristocratic elites (dominant wills) seek methods to control the masses (human labor) production.
Viewing history through this lens, I then reviewed my notes from the economic field and recalled the three factors needed for all production – labor, land, and capital. Indeed, one of the classical economists, John Stuart Mill, wrote, “The Law of the Increase of Production Depends on those of Three Elements— Labor. Capital, and Land.” When I married these two concepts together, I realized I had discovered the aristocracy’s playbook for the matrices of control throughout history. The code to building control matrices, in effect, had been broken. For in order for the elites to control the masses production, they must do so by controlling one (or more) of the three factors of production. Not surprisingly, history reveals the aristocracy used each of the three factors of production in building the three main control matrices used throughout history. Theory, in this case, mirrors history exactly.
The Financial Matrix, needless to say, was not the aristocracy’s first matrix of control. Rather, it’s the third one (based upon the third factor of production) created after the first two matrices (based upon the first two factors of production) collapsed. Interestingly, most of the readers (assuming they didn’t sleep through history class) are familiar with the other two matrices of control – the Physical Matrix (human slavery) and the Land Matrix (feudal serfdom). Ironically, although Western Civilization’s founders (the Greeks and Romans) wrote about liberty and justice extensively, they also hypocritically exercised the Physical Matrix to enslave defeated foes. The slaves were forced to work while the conquerors, who disdained physical work, enjoyed the liberty to speak, write, and lead. The Physical Matrix was a system of control where the aristocracy (the strong) forced the masses (the weak) to toil away in slavery and obscurity. The Physical Matrix was the preferred method of control throughout antiquity until something changed in the late Roman Empire.
That change, in particular, was the influence of Christianity upon the social norms of Roman society. Whereas slavery was previously acceptable, Christian doctrine taught that all men were created equal before an almighty God. Since all fellow-believers were brothers and sisters in Christ, it became increasingly difficult to rationalize how a Christian for enslave a fellow brother or sister (unfortunately, the later discovery of America restored European rationalizations and the Physical Matrix enslavement of people from Africa). Thus, without the moral support from European society, the Physical Matrix collapsed under its own weight in the middle-ages. Not surprisingly, however, the aristocrats sought an alternative matrix of control to replace it. Although labor could no longer be controlled directly, perhaps the aristocracy could do indirectly what it could no longer do directly. Predictably, almost as if the aristocracy understood the three factors of production and crossed off the first one (labor) only to move over the next one (labor), the aristocracy built the Land Matrix by owning and controlling all the land in the middle-ages of Europe. The Land Matrix (feudal serfdom) was a system of control system where the aristocrats (kings, princes, and lords) owned all the land and the serfs were forced to serve the lord in order to survive.
Feudalism (Land Matrix) was, in essence, a system where the aristocrats promised the serfs protection if the serfs would work the owners land. The new matrix provided the serf the land he needed to live for a land tax amounting to around 50% of his agricultural production. Furthermore, the serfs agreed to work the lord’s fields several days a week, since the aristocrats rarely, if ever, worked their own fields. The serfs, having no where else to go, nor strong enough to resist the tyranny, simply submitted to the Land Matrix. Although, the people were no longer slaves, they weren’t free either because the high taxes forced immobility permitted the aristocrats to indirectly control the serf’s labor by directly controlling all the land. Generations of serfs would live and die on the same piece of land performing basically the same work as his forefathers. Feudalism in Europe ended the Physical Matrix slavery (control of the first factor of production – labor) only to birth the Land Matrix serfdom (control of the second factor of production – land).
Finally, however, during the late middle-ages, the reintroduction of gold and silver destroyed the economics of feudalism since the serfs no longer needed to live on the lord’s land. In the city air, the serf could breathe free. The serfs migrated to the growing cities where they became bakers, butchers, and candlestick makers to live without needing the lord’s land. The peasants, instead, sold their services for gold and silver (asset money) and then traded the asset money to purchased other items necessary for survival. Asset money and free cities allowed the serfs to live without the lord’s land and, not shockingly, the Land Matrix collapsed. For the serfs could no longer be controlled by the aristocrats who owned all the land. Now, both the Physical and Land Matrix were for all practical purposes, extinct.
However, there was still one more factor of production (capital) the aristocrats could seek to control to build another matrix. Naturally, the battle between society’s gold-standard asset money and the aristocrat’s fiat-standard debt money began in earnest. Interestingly, money was created by society’s members (one of the essential developments for civilization) as a measurement of exchange value ratios of various products. The following several paragraphs is an attempt to simplify a complicated subject. Thankfully, it’s not crucial to understand all of this when reading for the first time, but I want to include it so that a person has access to the truth of our current financial system.
Money was created by society to measure what one item was worth in relation to others. Gold and silver were the preferred forms of money because it was light-weight, easily divisible, and in demand practically everywhere. And, since gold is a fixed-quantity (it cannot be created out of thin air) and is difficult to mine, inflation was low and predictable. Indeed, the rebirth of asset money fueled the growth of capitalism by increasing the division-of-labor, and trade between peoples. Remarkably, for nearly four hundred years, asset money led to the creation of more wealth for more people than at any time in recorded history.
Of course, the aristocrats attempted various methods to manipulate the money supply (debasement and fractional-reserve banking) but the gold-standard tied their hands. Indeed, anytime the people suspected the aristocrats of foul play, they could demand all payments in gold, forcing the aristocrats to pay in asset money rather than the manipulated debt money. The gold standard acted as an automatic regulator to protect the masses against the manipulations of the elites. For it forced the elites to redeem their paper debt money into gold asset money whenever paper holder demanded it. This on-demand gold-standard redemption policy tempered the inflation manipulation ability of the aristocrats because the elites feared the masses would cause a run on their banks if they suspected fraudulent overprinting of paper compared to gold reserves. The gold-standard, in sum, was the only thing standing in the way of the elite’s matrix of control over the third factor of production – capital.
Unfortunately, with the start of World War I, the elites finally smashed through the gold standard and achieved its four hundred year objective – the birth of the Financial Matrix through control of the third factor of production – capital). The four hundred years of expanding liberty now began its long contraction in the the vice grip of fiat debt-money and fractional-reserve banking. True, the wealth created over the four hundred years was not lost overnight, but slowly, painfully, and inexorably, debt money would replace assets and control would replace liberty. The aristocrats Financial Matrix created a system of indirect control of the masses labor through the direct control of the medium of exchange (money) needed by all using the capitalistic system. One can easily see the damage caused by the Financial Matrix by studying the lost value of the U.S. dollar since the 1913 creation of the Federal Reserve fractional reserve banking system in the U.S. For the value of one U.S. dollar in 1913 is now worth less than four cents today. Put differently, it now takes 25 dollars to purchase what one dollar could purchase in 1913. Dismally, however, inflation is just one of many injustices caused by the Financial Matrix.
When inflation is combined with the increased personal and national debts (which increase taxes), the reader can see why the masses across the civilized world struggle to make ends meet. Indeed, the government-sponsored fractional reserve banking (FRB) system allows banks to partner with central banks to create the majority of society’s money (debt-money) out of thin air. Shockingly, the FRB system permits the banks to create debt money but forces the borrower to pay it back with real assets earned through real production. In essence, artificial dollars (debt money) is created by banks to loan to people who pay the loan and the interest back in real dollars.
The Financial Matrix is the best form of control ever designed by the elites because it is difficult to detect the sleight-of-hand. Whereas it was easy to see the coercion involved in slavery or serfdom (Physical Matrix and Land Matrix) few people understand that debt-money is credit coercion created out of thin air. The debtor is forced to pay back fiat loans through performing real work. If he doesn’t, he is invariable coerced through threats of litigation, bankruptcy, or shame. Amazingly, the FRB system permits the bank system to create debt money to increase profits and control of society’s masses. In fact, The FRB system is the key to the Financial Matrix and why the latest matrix is the most effective and efficient one ever.
Above all else, remember that the Financial Matrix system of control is dependent upon the creation of debt-money. As a result, the Financial Matrix promotes home ownership and home mortgages because it produces most of the systems debt-money (approximately 2/3 of all U.S. debt money is from home mortgages). Disastrously, the Financial Matrix has gutted the home-equity percentages (amount of value owned after subtracting all mortgages), decreasing home-equity percentages (percentage of ownership free from house loans) from over 80% in the 1950‘s to just over 30% today. The Financial Matrix, essentially, has siphoned nearly 50% of the value of the USA’s $25 trillion housing market in just the last 60 years! Nearly $12.5 trillion dollars (almost as much as the total USA national debt) of assets lost by US citizens with little to show for it.
Ok, I promise that is the most complicated part of the book and why the Financial Matrix is so successful, few people even understand it, let alone know how to resist it. In fact, this is why I started the book with a scene from the move The Matrix. If you haven’t watched it, I encourage you to do so. Perhaps no movie has captured so much truth in the form of fiction. Neo is searching for answers to understand why he feels enslaved even though he is allegedly free. Neo spends his days working a job and his nights searching for answers as to the paradox. Similarly, for the last 20 years, I have been building leadership companies as my business and searching for life’s answers as my purpose. To me, the discovery of the Financial Matrix system of control is eerily similar to Neo’s discovery of the matrix. In a particularly telling scene, Morpheus explained to Neo why the world is not as it seems, that a matrix exists to control the masses energy (it’s a sci-fi thriller, after all) whether they are working, playing, or sleeping. The matrix is, as Morpheus explained to Neo, “the world that has been pulled over your eyes, to blind you from the truth.”
Of course, Neo asked what truth Morpheus is referring to and learns, “That you are a slave, Neo. Like everyone else, you were born into bondage, born into a prison that you cannot smell or taste or touch. A prison…for your mind….Unfortunately, no one can be… told what the (Financial) Matrix is… you have to see it for yourself.” Morpheus places two pills before Neo and gives Neo a choice. If he takes the blue pill Neo will live an illusion and never escape the matrix, but if he takes the red pill, he will learn the truth about the matrix and how to set himself free.
If you, like Neo, have been searching for answers, the good news is: the search is over. Just as Morpheus offered Neo the chance to learn the truth, so too do I offer the reader the truth. The rest of the book explains the Financial Matrix and how the reader can avoid it. If you read the book, you will discover how deep the rabbit hole goes and how to escape it. If you don’t read the book, you can believe whatever you want to believe locked inside the Financial Matrix. Not to sound overly dramatic, but I truly believe your next move will have longterm financial consequences.
For those moving ahead, it’s time to share the billionaire secrets that provided me the roadmap out of the Financial Matrix.