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Old 09-21-2008, 03:47 PM   #1
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Default Thomas Greco: Inevitable End of Central Banking

Thomas Greco is quite knowledgeable in the areas of local exchange currencies, barter, direct credit clearing, and "what money really is." I would definitely recommend getting acquainted with his work. (see links below)

Here is Tom's Sept. 21 e-mail letter on the current economic meltdown, and the opportunities it presents for people of good will everywhere. Enjoy!

The Inevitable End of the Central Banking and Political Money Regime

The present disorder in the financial markets and the cascading failures of
financial institutions come as no surprise. Those who recognize the
impossibility of perpetual exponential growth and who understand how
compound interest is built into the global system of money and banking
expect the continuation of periodic "bubbles" and "busts," each of
increasing amplitude until the systems shakes itself apart.

Engineers call this phenomenon, "positive feedback." Such a system cannot
find equilibrium. Imagine a heating system in which the thermostat, sensing
a rise in temperature, calls for more heat instead of less. Such is the
nature of the debt-money system. The imposition of interest on the debt by
which money is created, demands that more debt be created. Such is the debt
imperative which gives rise to a growth imperative. Among other things, it
prevents the emergence of a steady state economy.

Is this the final round? Who can say? Can the system be saved yet one more
time? Maybe.

Under the central banking regime which has become all but universal in
countries around the world, money has been politicized. The collusion
between politicians and international bankers enables governments to extract
wealth from the economy by deficit spending and banks to extract wealth by
charging interest on money as they create it by making loans. These two
parasitic elements take wealth away from productive members of society and
lavish it on military adventures, international intrigues, wasteful
boondoggles, and financial finaglers.

When the system spins out of control what will come out of the chaos? It is
impossible to predict but here are two strong possibilities. When the dollar
collapses the financial and political elite class will certainly try to
orchestrate a new global monetary regime based on the same old mechanisms
for centralizing power and concentrating wealth in their own hands, seeking
to complete the New (feudal) World Order which has been abuilding for the
past three hundred years. Another possibility is the emergence of the kind
of decentralized, democratic, and sustainable system we have been advocating
for a long time.

We had better get ready to seize the opportunity that accompanies this
impending crisis.

How? By organizing ourselves in our local communities and affinity groups to
reclaim the credit commons, to create interest-free, non-dollar, non-bank
exchange mechanisms and payment media. This is not as hard as it seems. We
already know how to do it. All it takes is organization and will.

Back to the current crisis, we should consider the possible actions of
America's creditors. According to Paul Joseph Watson & Yihan Dai, in and
article in Prison Planet (http://prisonplanet.com/) dated Friday, September
19, 2008, "China Finance, China News and Chaobao Financial News, all state
owned media outlets, slammed the Fed for taking action that will only make
long term economic conditions worse and devalue the dollar by "creating
money that does not exist which leads to the inflation of liquidity," a
policy contrary to China's position as a holder of vast reserves of US

Central banks have one true function, that is to manage the effects of the
parasitic drain, to decide who will pay the price, who will feel the pain.
They can either (1) restrict credit, thus causing recessions, bankruptcies
and unemployment; or (2) they can expand credit and inflate the money supply
by monetizing debts (either public or private) that are uncollectible.

Given China's position as one of the United States' biggest creditors, it is
in a powerful position to determine the outcome of the current and future
financial crises. If they don't like the restructuring plan that the
financial elite wants to put in place, they can kick over the table by
dumping their dollar holdings and causing the value of the dollar to crash
through the floor. Organized others acting in cooperation might do the same.

"The king is dead, long live the king."

Thomas H. Greco, Jr.
60(0)17 329 4306 (Asia)
Website: http://www.Reinventingmoney.com
Blogs: Beyond Money: http://beyondmoney.wordpress.com;
Tom's News and Views: http://tomazgreco.wordpress.com
Photo gallery: http://picasaweb.google.com/tomazhg

"Generosity is the virtue that produces peace." - from a Buddhist Sutra

Last edited by DiVineEnvy; 09-21-2008 at 08:58 PM. Reason: minor correction
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Old 09-21-2008, 04:10 PM   #2
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Default Re: Tom Greco: Inevitable End of Central Banking

Great article. The legislation being presented this week shows us what "their" version of the new economy will look like - Fascism. The Patriot Act and subsequent legislation is the left hand of Fascism - destruction of individual rights and liberties and transfer of such to the discretion of the government, and these actions by the Fed and Treasury are the right hand - the final elimination of free markets and their subsequent arrival under the thumb of the government. This is not regulation, it is nationalization, a.k.a. Fascism.

The next president of the U.S., if there is one, will de facto become the first Fascist dictator of the United States of America.

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Old 09-21-2008, 04:23 PM   #3
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Default Re: Tom Greco: Inevitable End of Central Banking

excellent article... i love the thermostat metaphore
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Old 09-21-2008, 04:35 PM   #4
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Default Re: Tom Greco: Inevitable End of Central Banking

Yes, this is an excellent article. I too, along with many others wonder how this will be played out. One thing for sure. It appears that many folks (especially China) have now waken from their slumber and will also be following this with great interest.
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Old 09-21-2008, 04:52 PM   #5
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Default Re: Tom Greco: Inevitable End of Central Banking

good article and easy to understand
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