If you feel a total lack of interest in politics, you are not alone. Many young people are switching off from government and the state which promises so much but delivers so little. People are seeing the politicians for what they truly are; players in a game which serves only themselves.

Those who do still feel that voting is something worthwhile doing, are usually those with little interest in rectifying the key issues of the day, those who have no idea what is really going on behind the scenes presented by mass media, or those who still inhabit a world where they are getting a good deal from politicians. Typically they are the older, richer, voting population; baby boomers who have benefitted from the crony capitalism and fiat money supply expansion that has made all UK homeowners rich over the last 30 years. Many have a naive view of politics and don’t understand how the system works, and how corrupt and inefficient it is.

Human beings are Hardwired to Act Selfishly

We shouldn’t blame them, for politicians are just human beings, and human beings are set up to do the very best that they can for themselves, not to benefit anyone else first. This is why capitalism (rather than communism) is the system of choice, it favours individual benefit. What we are currently operating in the UK and US is not true capitalism, but crony capitalism, where the truly free market is skewed by subsidies and tax and spend of governments. Why would you think that you know what is best to spend your hard earned money on, when a government can do it for you?

As the state has grown the inefficiencies inherent in a massive organisation have grown with it. Yet bureaucracy is nothing but an overhead, an overhead that we could do without.

The truth is that politicians don’t help themselves; the political story is about selling the notion that politics and politicians can benefit you the individual. I was watching Ed Millipede tell the UK television watchers that he is the right man to make people’s lives better. I’m sure he has noble intentions, but this is just not possible. It is a lie, but one politicians need to tell the voting public in order to get what benefits them.

Politics is about votes. Politics is about election and re-election. Politics is about sound-bytes and platitudes. Most of all politics is about Money.

The rich and powerful (currently banking, finance and big business) fund political campaigns in return for legislation which benefits them. Again, bankers are acting in their best interest, so we shouldn’t be surprised about that. Those with money fund the political parties, and the political parties reciprocate in kind. It’s a simple case of ‘You scratch my back, and I’ll scratch yours’.

When these giant financial institutions fail as a result of their reckless decision-making, the politicians gift them future taxpayer’s money as a bail out. Allowing them to fail would mean an end to votes, and an end to the banks’ lucrative funding streams. Again, it’s clear to see why they behave as they do, even though their behaviour is so appalling, and so fundamentally wrong that it’s hard to know where to begin.

Politics = Banking

Politics is not going to make your life any better. Not one bit. It may give you something to read on the train on your way to work, or like the X-Factor phone-in lines, make you think that you are participating in the outcome, but all you are doing by voting is voting for more government, more control, and more taxes, more inefficient use of your money which you would be far better at spending yourself.

Politicians cannot improve the economy, neither can they give you more than you give them. Politicians; the government and its associated bureaucracy is a national overhead, it takes your money and gives you less back in return.

Some of your cash goes into the politicians’ pockets, some of it goes to the welfare state to those who contribute little to the economy, and some of it goes to those bankers and financiers we have already mentioned who broker the deals, who create the nation’s money supply and take their cut.

Know Yourself What is Happening, and Act Accordingly

There is frequent outrage at the responses of those in power when they lie, conceal and conspire to protect their own from justice, but we shouldn’t be surprised. We should laugh at the ridiculous notion that these people are ever going to do the right thing by us, and decide what we can do to make our own lives better.

I have just finished reading a wonderful book called ‘Life after the State – Why We Don’t Need Government’ by Dominic Frisby.

It is a really wonderful book which outlines the ways in which the state (government) power has grown under the assumption that we are not capable ourselves of making good decisions and acting like adults. As a result of being treated like children we start to act like them.

Government manages, through subsidies and crony capitalism, to pollute the efficiency of truly free-market economics. But the market is best placed to decide where capital should and shouldn’t flow, which businesses prosper and which die, and which systems best serve the people. Who is a better arbiter for an individual than an individual himself? Certainly not a remote government bureaucrat.

Frisby’s book is a wonderful read, and provides much food for thought. After trawling through the established anti-establishment policies such as Land Value Taxation, Reducing (or abolishing) an income tax on productivity, and making the tax system simpler and more transparent, Education, and Healthcare, we arrive at the most important of all; money supply.

He who controls the money supply of a nation controls the nation. – James A. Garfield

The state has managed to stitch us up, because it has control of the money supply, through the banking sector which creates money when it makes loans to businesses and individuals, and the Bank of England’s fallacious idea that they can control inflation through setting interest rates (they can’t). The UK money is a fiat money, and as a result there is no limit to how much is created, and those who receive the money first (Government and Banking) profit the most, as we have seen.

By participating in the system, we are voting for it. But if we withdraw our cash, and our attention and put it elsewhere, we are suddenly allowing the free market to take effect. The Pound Sterling (as a money) is on loan from private banks. Our government enforced money supply is provided by private banks, at interest (I felt it was worth reiterating that point).

If we look to alternatives, this corrupt money system, and those who benefit from it will start to fade away. There are those with ideas to reform the current system, groups like Positivemoney.org, and while I admire their approach, I see a wholesale change by the people to an alternative money a path of far lesser resistance than trying to change an entrenched, immensely wealthy self-serving established system.

It is also worth pointing out here that if you give your attention to something, you get more of it, this is a natural law. So the onl way to change something is by looking at something that we prefer, and not pushing against what we don’t want. Ever noticed how the war or drugs, war on terror, the war on teenage pregnancy, the war on anything always gets bigger?

This Time Around there Will be Blood

I encourage everybody to become well versed in the current situation, to understand money and where it comes from, and how the government hinders rather than helps a productive economy (look at the UK in the 1960’s). If you do nothing else, read Frisby’s book, and then begin to act accordingly, in your own best interests, and spread the word.

I don’t doubt that there will be violence when this whole financial situation unravels itself. When ordinary people (not those reading this blog, but perhaps the Sun) realise the scale of the scam, there will be riots.

If the government is foolish enough to bail out the banks a second time, then there will definitely be civil unrest in the UK, and the USA, blood will be shed, and people will lose their lives. The bankers will be driving their Ferraris out of London in fear of their lives, and well they might for the scam they have pulled. I have no doubt about this.

I sincerely hope that the government has thought long and hard about how they are going to let banks go to the wall this time around, because unless the government want a ‘French Revolution’ style overthrowing, this is what they will have to do. If you read about the roots of the French Revolution, you will find many similarities with the state of the nation today. Perhaps this is our opportunity to see the end of the fat, bloated controlling state and to start self-regulating.

When the government uses austerity on the people at the same time as bankers get million pound bonuses of taxpayer money, people are going to get angry, and an angry mob will do a lot of damage.

Turn the Other Cheek

As much as I would like to see banksters go to the guillotine, I think that there is another, even better way to tackle this issue of politics and the banking system in cahoots.

We all know the issues of the banking system (if you don’t read why are bankers so rich?), and we should accept that people are just doing the best that they can for themselves, financially and in any other regard.

Instead of executing the untried criminal bankers who screwed over the country, engaged in rent seeking and hindered the productive economy for decades, we should instead stage a mutiny, an abstinence from the credit system and a gradual withdrawal of our support, and finally a cessation of banking activity.

Banks require your money to do what they do to make their staggering profits; gambling, creating money to lend into property and push up prices, charging us fees for all manner of things, selling us financial ‘products’ which benefit the bank and not us, charging us fees for ‘managing our wealth’, charging us a brokerage fee when constructing an IPO deal or trading stocks, and charging us overdraft fees and credit card fees when we ‘borrow money’ they have the privilege to create out of thin air. Banks are a tax on the lifeblood of an economy, its money supply, and we’d be better off without them.

Abstinence from the banks means their precious fees disappear, their cashflow dries up, and then they are royally screwed. Without the cashflow to meet their obligations, they are insolvent (actually they already are) and will fail sooner rather than later.

We must never forget that we the people, make all of this possible by our participation in it. If we chose something else, these businesses, banks, governments would fade away. They should have been serving us but over the last 30 years we have been serving government and the banking sector, and working two jobs to meet our debt obligations to the banks. It is time to redress the balance. It is time to give the power back to the people. They always had it, they just needed a gentle poke and a soft reminder.

The really good news is, there are alternatives to the current system which I will tell you about in a minute.

It is Time to get the Cash out of the Bank

Do you know that when you put your money in the bank, that money becomes the property of the bank. In return for having your money to play with, the banks give an interest payment.

If you are in the habit of using a credit card, rip it up and throw it in the bin (OK, keep it for when you need to hire a car). Cancel your direct debits, and set up a system where you pay your bills at the post office counter with cash.

If you are salaried, when you get paid on a monthly basis, extract as much money as you can in cash, and leave as little in the bank as you need to cover your standing order obligations like rent or mortgage repayments.

It may not make sense to pay your rent or mortgage repayments in cash, so it’s worth holding enough in the bank that you avoid overdraft fees (agreed or otherwise, you will be charged fees for using an overdraft facility). They less money you keep in the bank, the more vulnerable the banks are and the more responsible they must be in their actions.

Now you might say “What difference can I make?”. Perhaps one individual doesn’t make much difference, but if 10,000 people extract £3,000 cash they have in their bank accounts, the bank has now got £30 million less pounds reserve at their disposal. If 1m people extract £3,000, they are down £3bn. Your money is under your mattress, and when the bank fails, you are holding cash. It might only be paper bills, but it is more valuable than a debit card from a failed institution that nobody trusts. These banks will fail, it is only a matter of time. Why else do you think they are making hay while the sun shines?

As banks lose their credibility one by one, so will the credit cards that they issue. In this regard holding cash, Bank of England paper notes, (or Federal Reserve Notes) will be more valuable. You might even choose to hold a little physical Gold or Bitcoin.

FIRE is an Overhead We could Do Without

The FIRE sector; Finance, Insurance and Real Estate (including Lawyers) are not the creators of wealth. Banks may create fiat currency with a stroke of the keyboard; currency which inflates the money supply and raises prices, but they don’t create any wealth. Entrepreneurs create weath. All banks do is take other people’s money, and ‘invest’ it for them, and take a fee. Dealing with large amouts of money means their tiny percentage fee amounts to a large amount of money. As they have the ability to create money out of thin air to pump up markets, they don’t even need to have a brain to make money. It’s a giant Ponzi scheme, and they have unlimited funds to put in.

Insurance is equally unproductive. They are a hedge against risk, but they don’t create any wealth through their activities.

Lawyers are hired to create paperwork, paperwork which is used to hedge risk; risk of buying a bad property, risk of doing a bad deal, risk of losing your money upon death etc. It is still an overhead that, in a more open, trusting society, could be spend on productive economic activity.

Banks, insurance companies and lawyers are largely a tax on productive economy. Politicans and the FIRE sector are holding hands and laws (statutes) are passed to maintain this status quo, and never mind anyone else. They will not give up their precious fees lightly. It’s so much easier to take a cut of a deal than to do something productive. Being an entrepreneur is risky.

Banks are the same as their favourite ‘product’, derivatives; in that they derive their value from something else

But this overhead has become untenable, and it is killing the UK and US economy. The productive economy cannot bear it any more. When the financial sector’s contribution to national GDP is stated, this amount translates to a tax on productive business, a tax on those who create wealth in the real economy.

Without a real business to prey on, banks would go out of business, as on their own they are nothing. Without a host, the parasite withers and dies.

Banks are the same as their favourite ‘product’, derivatives; in that they derive their value from something else. Without business from which to extract blood, what would all of the bankers, insurance companies and lawyers do with their time?

Well, we’re about to find out, because very soon they will all be redundant, and will have to go out, like the rest of us, and find something productive to do.

Bitcoin – The Quiet, Peaceful Revolution

If you don’t know anything about Bitcoin, or if you’ve only just heard of it, may I suggest you read up on the subject, as it is going to play a part in your future life.

The adoption of a digital cryptocurrency such as Bitcoin, has the potential to disrupt the status quo of banking, insurance and the legal profession, and rewrite the rules regarding crowd funding, the transfer of wealth, increased profitability, increased entrepreneurship, and a far greater sense of attribution of wealth to those who created it. In short it promises a freer flowing exchange; a more efficient economy, and a levelling of useless government bureaucrats.

Stefan Molyneux of freedomainradio.com is a very funny guy who champions personal freedom. Stefan ‘gets’ Bitcoin. He has put together a number of presentations on Bitcoin which explain the significance of digital currency as a concept. Watch his presentation below, and try not to get too excited.

The overheads of the country, the size of government and its ancillaies (FIRE sector), is a good indicator of the state of health of an economy. A very large, meddling government signals an unhealthy, stifled economy. A tiny, hands-off government doing what it was designed to do; keeping order and enforcing property rights, while allowing a truly free market economy (not a zombie market where businesses which should have been allowed to fail under capitalism are propped up to survive as zombie institutions) will adjust itself in healthy ways. It automatically weeds out the bad investments and allows capital to flow to those who are best placed to use it.

we lost our biggest brains to the subsidised banking sector, and now we want them back

With the introduction of Bitcoin and the transparent blockchain, those working in the financial sector are effectively redundant. This means that their tax on the productive economy is gone.

Those clever individuals who were lured by big money to put their big brains towards inventing clever new ‘financial instruments’ and ‘products’ to circumvent the legislation and make the banks richer, can now be put to work producing something real which benefits society. Yes, we acknowledge we lost our biggest brains to the subsidised banking sector, and now we want them back.

A Programmable Currency

Bitcoin is valuable for its open source protocol. It is for the people, by the people, and it can be modified to suit any requirements we can conceive necessary. Unlike current systems which are effectively a closed money printing shop, the blockchain protocol has the ability to be used a key identifier of ownership or use of an asset. It can be used to transfer property, timestamp information, transfer infinitesimally small sums of money (very valuable), the list goes on.

Goodbye Fees

Transferring money via Bitcoin is very cheap. Removing transaction fees is a bit like moving from a country where bribing officials is a necessary barrier to getting things done to a less corrupt one (no country is without corruption).

With the gatekeepers removed, the economic process can become more efficient, and the prices can go down. Oh, and the banksters can go and do something more productive with their time.

Businesses pay banks transaction fees for using cards like VISA. Under Bitcoin, they would no longer be required to pay fees. Most of the charges are due to the fraud risk which occurs in the use of cards, which Bitcoin protocol removes. The Bitcoin system is very hard to defraud.

Crowdfunding

The traditional means of funding projects involves banks and therefore involves their fees, but in the case of a digital currency, not only is it effectively free to transfer cash, but the use of crowdfunding allows businesses to raise capital without involving the traditional costly IPO model, which (you’ve guessed it) serves those insider traders at the banks!

As an engineer working in decentralised energy projects, I am extremely excited at this prospect. Rather than having to approach a financial organisation, the individuals who are likely to benefit from the infrastructure can be sought for the funding, just like a kickstarter campaign.

The old funding model, which is the way the welfare state is run, involves a centralised planner like a government taking money from people and deciding where that money flows. This always leads to a less efficient economy, as the free market is not allowed to operate as it should. Instead the government thinks it knows what everyone wants (it doesn’t)

Welfare State – ‘Give Me Your Money, and I’ll Give it Back to You’

Crowdfinding is different. I have thought for a long time that government tax and spend is not representatve of what the people want. As a single, healthy, employed, middle class man with no children, I certainly wasn’t feeling that I was getting my fair share of my money back from my state taxes.

The state effectively says “Give me your money and I’ll give it back to you” I appreciate that there must be certain public services such as the police, the fire service, the rubbish collectors, the libraries etc, care for the elderly without the means to support themselves, but it goes too far.

After the essentials, the rest of the services should be paid for by those who vote for those systems with their money; Education, Healthcare & Infrastruture should all receive funding by those who vote for them with their money, via a crowdfunding type model, not a welfare state model where the majority expect to get more back than they contribute.

You could have a very basic standard of state supplied services, and then people could choose to upgrade their level of service as they saw fit. You can have a very basic road, and then a fast pool lane for those who chose to pay the toll. A very basic hospital, and a private one with shorter waiting lists and prettier nurses, which costs more.

Money raised in taxation from road fuel would be spent on the roads (what a novel concept) and money from train passenger fares would go to fund the railways and rolling stock and not into the pockets of shareholders of subsidised train operating companies as is currently the case. Stealth taxes would have to disappear as under the free market, things would be paid for by those who use them. There would be no more propping up of phony businesses which should have been allowed to fail.

In the heyday of the railways, all of the railways were run as independent profitable private businesses, so why can’t we do the same today? It’s because the cost of the overheads (i.e. the FIRE sector) and its fees has wiped out their profitability. In a diversion of funds to the parasitic FIRE sector, the infrastructure suffers.

The net result is that infrastructure schemes which could be proftable are not, and those schemes which should pay for themselves can’t, requiring additional borowing (from the banking sector at interest, thereby mortaging future generations to pay the debt) as we bring the future forward to pay for today.

Crony Capitalism

To have a healthy economy, the market forces must be allowed to work; we must let the poor decision making lead to company bankruptcies, individual failure and the chance for something else to take its place. In the wild this is called survival of the fittest, in the human world of socialism it is called “the successful middle classes have 1.8 children while those they are subsidising on welfare have 6 or 7”. How is this natural selection? It sounds harsh but the weak should not be encouraged over those more successful.

Had the financial market been allowed to correct back in 2007/8, we wouldn’t be in the mess we are in today. The statistics on unemployment and inflation today are mere works of fiction constructed to suit the government’s wishes

You Vote for Things by your Attention to Them, and your Money

It’s no surprise that banks are rich. As the creators of the money (they literally conjure it out of thin air), and the recipients of your and others’ cash, they have set up a system which extracts fees from others.

If you feel outraged at what is effectively a stealth tax, and don’t see why your hard earned cash should be appropriated in legal (and frequently illegal) manners, don’t vote for it, with either a tick in the box on polling day, by putting your money in a bank or using any kind of ‘broker’, I promise you they will get far more out of your interaction than you ever will.

Look to the future, get wise about cryptocurrencies, and spread the good word to all of your friends, educating them in the benefits and efficiency improvements.

While central banks like to have you believe that the legal tender of any country is their concern, and they will attempt to extract value from others in the ways that they always have, at the end of the day, neither the politicians nor the banks have any say in what is used as a means of exchange. They will probably fight cryptocurrency’s introduction, but if a majority of individuals use Bitcoin and other cryptocurrencies, there will be too many us for them to throw into jail.

The form of money a society chooses and it’s value is set by market price discovery. Just because at present people have faith in the fiat money from the bank of England and the Fed, doesn’t mean they always will. People are one by one returning to the gold standard, and will seek other means of exchange which are similarly uninflatable. Bitcoin and other cryptocurrencies are the biggest thing that has happened to the world since the invention of the internet. Spread the word, and get wise yourself!

Bitcoin – Change money change the world!

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