Our Gigantic Delusion

Can We Overcome It In Time?

We live in a culture wide, all embracing fantasy world. It has become our total “reality.” It is our Conventional Wisdom. Paul Ehrlich called this intellectual fog “wonderland.” In 1973 Jonah Raskin called it “mythology.” In 1978, Columbia Professor Edward Said wrote his famous book Orientalism in which he surveyed Western academic literature and novels about our attitudes toward Asia, Arabs, Palestinians, East Indians, and Moslems. He found that even novelists assumed that Westerners were more moral, advanced, and enlightened than Asians and that it was our duty to bring our civilization to them. Orientalism boiled down to racism: Our Caucasian race, our Western way of life, our civilization, our economy is good and clean, and theirs is backward, antiquated, dirty, ignorant. and bad. John Bellamy Foster, Professor of Sociology and Richard York, Associate professor of Sociology, at the University of Oregon, and Brett Clark, Assistant Professor of Sociology at North Carolina State University, in a Monthly Review article, “Capitalism in Wonderland,” show that all of our mainstream economists, policy makers, media owners, editors, journalists, and politicians conform to the dictates of this falsified view of reality. President Obama, Lawrence Summers and all his other advisors, and most members of Congress are captives of this false view of reality.

Even when presented with facts that challenge this gigantic delusion, being frightened, hypnotized, addicted, and brainwashed, we reject them. The irony is that the delusion is so grandiose, that one like me who challenges it, runs the risk of seeming to be a grandiose crazy individual.

Our reigning economic falsehood is that our market economy whose principal goal is short term private profit, is the best that humans can create, is the best for everybody, and is in every respect unchallengeable. Moreover, THERE IS NO ALTERNATIVE. Thus, we cannot have and cannot even consider

  • Serious measures to deal with the needs of our damaged planet home.
  • Socialism in any form.
  • Extensive public hiring and public works.
  • Caring for ourselves and for each other using the powers of our government.
  • Directly giving people who want to work, employment to meet our vast unmet needs.
  • Mondragon type cooperative businesses.
  • The immorality of a system based on selfish, short term, private greed and absence of caring.
  • Medicare for everybody or a VA-type public Hospital and doctor available for everybody.
  • Any health care system that does not provide some private persons with a generous private profit making opportunity from our accidents and illnesses .
  • Solutions to the ever increasing disparity between the rich and the poor.

Our President and his economic advisors are imprisoned by this reigning market falsehood. It embodies the further falsehoods that our market economy is basically stable, contains no systemic defects, contains no laws of motion or dynamics or anti-social tendencies, and that its minor aberrations can be managed by unlimited expenditures of our tax dollars or by borrowing. The fact that systemic defects caused our “capitalism to hit the fan” ((See University of Massachusetts Professor Rick Wolff’s You Tube video, “Capitalism Hits the Fan.”)) in 1980 are simply ignored. Thus our President and our government by exhaustive efforts to restore bank lending, seek to create a new credit bubble to replace the housing bubble that crashed. Their stated rationale is that the banks will lend, businesses and individuals will borrow, and that ultimately new jobs will be created. They seek also to maintain and restore the many forms of collateralized debt obligations free of any new regulation. They ignore the basic truth that our economy can be re-started only by directly creating jobs providing enough earned income so that citizen employees can afford to purchase the products of their labor. Moreover, our governmental leaders urge that we must restore “growth” of our existing economy, with its inevitable growth of our emissions of carbon into the atmosphere, of pollution, and our depletion of the planet’s finite resources of oil, soil, and fresh water. As a consequence:

* We are ignoring a basic rule of arithmetic that even “reasonable” growth of 3% per year leads to doubling within an unexpectedly short time. (To get the doubling time simply divide the number 70 by the percentage rate of growth. Thus 70 divided by 3 gives us a doubling time of 35 years. A 4% growth rate would have a doubling time of 17.5 years. A 6% growth rate would give a doubling time of about 12 years. Such doubling continues over and over again so long as the growth rate continues.) Do we really want to double our carbon emissions and consequent global warming? Do we really want to double the consumption of oil, soil and fresh water? Do we really want to double the population of the planet? Is not any talk of growth idiotic? We need a sustainable, stable economy with zero growth.

* We are frightened and uneasy. We are acting irrationally in street marches and in public hearings. We do have to fear fear itself. We have no FDR who promises to meet our needs. We have a presiding eloquent Black Herbert Hoover and not a Black FDR. There are no plans on the shelf for any plausible solutions, and no leaders or academicians promoting them.

* We, of the political left, right and center, with good reason, are worried about how we and our children will pay for all of this vast expenditure of public tax dollars. We worry whether there will be the disastrous inflation experienced by Argentina a few years ago, deflation even worse than the Great Depression of our grandfathers, or, for us, both at the same time.

Then there are the many falsehoods that accompany the extension of this reigning falsehood, our “good” market economy abroad to foreign countries, an extension that we used to call Imperialism:

* Does anybody really believe that our own sons and daughters in the military, and Afghanistan and Pakistan civilian men women and children are being killed or wounded every day as a part of our effort to help them or to bring them Democracy?

* Does anybody really believe that the Honduran military Generals trained in our School for the Americas, financed by loans and grants from our government, using a plane that we financed, landing on the way out at a US military base in Nicaragua, acted without U.S. consent in deposing democratically elected President Manuel Zelaya?

* Does anybody really believe that we are getting out of Iraq when we replace every soldier withdrawn with a hired Blackwater mercenary soldier, and when we are building 4 large permanent military bases in Iraq, and the most lavish US Embassy building in Asia?

* Do we really need 800 military installations in 45 foreign countries staffed with 240,000 military personnel?

Then there is the deepest secret of all, so well hidden in our gigantic delusion, that almost nobody is aware of it. It is the secret Ponzi-like scheme of our private bankers that produces an almost unimaginable annual private profit for them at our expense. This secret private money creating scheme involves the following characteristics:

   1. Congress in 1913 delegated the power to create our money supply to the private bankers that constitute the Federal Reserve system. Congress does not use its power to coin our money. Private bankers create 95% of our money supply simply out of thin air. The privately owned “Federal” Reserve Bank simply writes a check out of thin air and issues the money to a private bank. The private bank then loans this money to a private or governmental borrower who promises to repay with interest. The promise to repay becomes an “asset” of the lending bank that it then uses to make many other loans under what is called “fractional reserve banking.” It is thus a fact that 95% or more of our money is based on debt. All existing money thus equals the total of all public and private debt.

   2. Our government instead of using its Constitutional power to issue money directly to meet governmental needs (as Lincoln did to finance the Northern side of the Civil War) borrows money to meet its needs from private bankers and pays private bankers interest on what it borrows. Repayment is promised from our tax dollars.

   3. Over time, the annual profits for the owners of private banks have compounded enormously. We cannot know how much because the private bankers secured a federal law making it unlawful to audit the activities of the Federal Reserve Banks. One can estimate the annual profit by simply multiplying a probable average interest rate times the total money supply since all money is debt. Is it reasonable to assume that the rate of return is at least 3 %? The total money supply was recently estimated to be $50 Trillion. 3% x $50 Trillion gives private bankers an annual gross profit of $1.5 Trillion per year. This profit compounded over the decades produces an unimaginable stash of total wealth for the owners of the private banks.

   4. The private banks use this immense secret stash of wealth to control our government and to override our votes on every issue that is important to banks. Thus it is accurate to say that we have a government of, by and for private bankers. It is also accurate to say that every aspect of the reigning gigantic delusion about our capitalism, including the Imperialism of defending and promoting capitalism abroad, partially set forth above, serves the interests and the profits of private bankers.

   5. These private bankers, having the authority to create money out of thin air have created too much money in the recent past and caused inflation, and are now creating too little money and thus are causing our current depression.

In the 1990s, Professor Jared Diamond wrote his book Collapse where he studied four civilizations that had perished in the past and two that survived. The two that survived, managed to overcome their prevailing falsehoods, their Conventional Wisdoms. The four fallen civilizations could not and did not. The question for all of us is: Do we have what it takes to overcome our gigantic delusion? Or will our democratic civilization fall into a new dark age where the only law is the Law of the Jungle?

Doug Page is a retired lawyer for unions, a former Democratic politician, and a life long observer of government, unions and business. He can be reached at: dougpage2@earthlink.net. Read other articles by Doug, or visit Doug's website.

26 comments on this article so far ...

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  1. Don Hawkins said on September 21st, 2009 at 11:45am #

    So far Doug the law of the jungle and in the short term compounds for people of wealth a few. Doug, Ted Glick wrote an artical today and I put a comment you should like and of course.

    Even when presented with facts that challenge this gigantic delusion, being frightened, hypnotized, addicted, and brainwashed, we reject them. The irony is that the delusion is so grandiose, that one like me who challenges it, runs the risk of seeming to be a grandiose crazy individual.

  2. bozhidar balkas vancouver said on September 21st, 2009 at 2:48pm #

    In all societies in which leaders [ancient or modern ‘nobles’] lead in limitless or reinless ways, many iniquities arise.

    In a fair and sane society, leaders wld also be led. If leaders appear near-totally or totally reinless, such as in US, we obtain slavery, lynching, segregation, racism [both domestic and foreign], 180 wars, hiroshima, nagasaki, near-complete elimination of indigenes, lack of basic rights, demonization of sane voices, disinformation, miseducation, etc.

    And in no society is the control of lower classes [ab. 98% of pop in US] as firm as in the US.
    This can be done only by first rendering people blind. That’s why basic schooling is mandatory. One obtains life-long servility of the children by simply telling them how great america, its leadership, constitution, liberty, laws, nobility of americans, etc., are.

    Germans, italians, serbs, japanese, brits, spaniards et al were likewise rendered blind. The methodology applied appears exactly the same in almost all lands.

    In short, the key in enslavement of a people is in degree of a leadership’s interdependence on one another and independence from sane voices.
    Bailing out one another with some [is it?] $10tn proves my point.

    It is true that americans have greater mobility; more things, etc.
    But americans also butcher more of own people thru accidents, pollution, warring abroad, import of drugs, drug wars, etc., than, let’s say, swiss, norwegians, slovaks, nepalese, et al do.
    All that for the glory of 003% + people. Some greatness??? tnx

  3. Don Hawkins said on September 21st, 2009 at 3:14pm #

    Bozh I just thought of something I am not one of the 003% and I know things I have thoughts I know Who am I?

  4. Socialism: Only Salvation for USA said on September 21st, 2009 at 8:35pm #



    The Obama administration supports extending three key provisions of the Patriot Act that are due to expire at the end of the year, the Justice Department told Congress in a letter made public Tuesday.

    Lawmakers and civil rights groups had been pressing the Democratic administration to say whether it wants to preserve the post-Sept. 11 law’s authority to access business records, as well as monitor so-called “lone wolf” terrorists and conduct roving wiretaps.

    As a presidential candidate, Barack Obama said he would take a close look at the law, based on his past expertise in constitutional law. Back in May, President Obama said legal institutions must be updated to deal with the threat of terrorism, but in a way that preserves the rule of law and accountability.

    Expanding the Bush war in Afghanistan. Expanding on the Bush corporate welfare bailouts. Keeping in place Bush’s Fascist “PATRIOT” law. I just don’t know how much more of this Obama “change” I can handle.

  5. john andrews said on September 22nd, 2009 at 3:02am #

    One of the key lies is the lie of ‘Growth’.

    ‘Growth’ is the one true religion that drives the planet – and it is a religion that must be defeated.

    Human population is growing at about two new births a second. That is NOT the birth rate. It is the GROWTH of the birth rate. At the very least it must be stopped, and ideally, reversed.

    Of course this is heresy to all our political, economic and religious ‘leaders’ – therefore it must be right.

    It doesn’t take a genius to work out that our plaent cannot sustain indefinite human ‘growth’. Whilst it could indeed continue at the present rate for perhaps a few hundred years it could only be at the cost of our few remaining wilderness areas, our few remaining wild species of animal, and the enslavement or anihilation of our few remaining ‘primitive’ people.

    ‘Growth’ must stop.

  6. ned lud said on September 22nd, 2009 at 6:06am #

    I’m a small family farmer and I think like a native (indigenous tribesman). Consequently, Organic Valley the ‘coop’ that supposedly is ‘built of small family farmers ‘ cut me down and ruined me–I didn’t think enough like they do….didn’t support and obey their ‘scheme’, wouldn’t tolerate their abuse. Fought back when they stepped on my face as a thinking rational caring loving human.

    The WHOLE of Western civilization, including the so-called ‘good guys’, is built on corrupt bureaucratic chain of command that ultimately ALWAYS follows this author’s assertion. Only a very very very select few, who are courageous enough to act and think independently, are any different. And of course, as I just intimated, they are made to pay with their lives. Either, as is most common, through economic ruin (like myself) or false imprisonment and/or death, think Leonard Pelletier (sp?), Paul Wellstone et al…

  7. Max Shields said on September 22nd, 2009 at 6:51am #

    ned lud ,

    I think the problem is the strong tendency to embrace, ultimately, authoritative top down governing principles rather that distributed, participatory democratic ones.

    Participatory democracy, not just the political aspect, but the very principle behind creating any kind of organization or movement, is a major challenge to this culture.

    With all the dissidence (DV, very much included), we are caged in a world-view and find it extremely difficult to break free from it.

    So, we have followers and leaders. In many cases the followers are barely aware of what’s happening (and I’d wage a guess that they aren’t particularly interested on less their toes are stepped on in some fashion). So the “leaders” take hold of the reigns and make the decisions and charge ahead. In the end we end up with one dynasty replacing another.

    This is not an impossible problem, but it must be acknowledge. We can’t simply talk about things like “single-payer” without understanding this fundamental issue. What is the role of the state? Is the State really in the public domain? What does scale do to our ability to implement fundamental change? Can we have real change in a nation built on the American “dream” and the individualistic culture that keeps movements from gaining real traction, and the political and economic plutocrats firmly in charge?

    Your experience with this “coop” is typical of the American experience. It is not an “indigenous” one. The species does continue to emerge, cocreating, but any given culture can have, as does the American culture, its deep rooted pathologies.

  8. bozhidar balkas vancouver said on September 22nd, 2009 at 7:40am #

    Of a necessary or much-needed truth, we cld postulate that humans, and apes; and elks, snakes, frogs are OK or are works of nature which did its best for biota.
    There is no more folks! Also sprach Die Nature! Das ist Alles Meine Kinder!

    Then came some people who began preaching that we are not OK. They said that they can even denature the nature and make us into a better beings and render the nature richer/cleaner, etc.
    They said to us “u’r not OK”. W.o. us, u’r lost: u’d turn into criminals; sin wld reign, because u’r sinful by nature, etc.

    With time, clerico-despotic class conviced 99.99% of people that that is true.
    We, the 98+% cannot and must not be permitted to govern [manage own business] our country.
    We are not able to interpret constitution. We are too dumb, vile, disinterested, etc. to be able to interpret/understand constitution or any law or any governance.
    All yooz guys do is drink beer, take drugs, watch inane movies sickcoms, fox or cnn ‘news’.
    so, shutta ur face and let us govern u as good shephards that we are and sacrifycing so much in the service of this great country.

  9. b99 said on September 22nd, 2009 at 7:48am #

    The US government also sells Treasury Bonds and similar interest-paying instruments (much of it to pay off interest on the national debt) that are gobbled up by foreign states and foreign private interests. These foreign entities thus own our debt, which debt, like the Fed Funds lendings to banks, is paid off by creating ever more money from thin air. Thus the US (actually, the American taxpayer) owes both the large commercial banks (now also having crossed the line to be involved with the most dubious instruments of the financial sector) and foreign entities, including sovereign wealth (the bond-buying nation-states themselves). It is borrowing from Peter to pay Paul, and borrowing from Paul to pay Peter – and ultimately extorting the money from the labors of Mary the taxpayer and her children. Of course, Mary the taxpayer is then required to work longer hours with less down-time so that it can said that the American worker is the most productive (the Dow can be seen as a measure of worker extortion) in the world. But she and her fellow taxpaying workers can never really pay off the debt because it is largely funny money continuously created by the Fed Reserve.

    It really IS a ponzi scheme.

  10. Don Hawkins said on September 22nd, 2009 at 8:58am #

    Yes I find good in all people. Sometimes when I do that they want more then more. So I stop and say nothing. Then they say did I do something wrong? No I say we must rest now and think. This is where most go away. An older not ancient ape of medium intelligent’s who took the red pill and special glasses I found in a dumpster and show’s me the real World and what a World it is. Can you end a sentence with is? Very sure some people will begin preaching that it’s not OK it is what it is.

  11. Don Hawkins said on September 22nd, 2009 at 9:31am #

    The Da Vinci Code the sequel the book has already sold over two million copy’s. Maybe we could start with it’s a rock. You can kiss it you can pray to it you can write books about it you can fight war’s over it you can make money from it you can gain power from it and it’s a rock. Where did it come from the Universe and where did the Universe come from? Well if you know the answer to that tell me and very sure you will become famous or they will put you on house arrest. Best of times worst of times.

  12. Josie Michel-Brüning said on September 22nd, 2009 at 10:01am #

    Thank you very much to Doug Page and everbody!
    I would like to add, there is a simple advice for discovering false prophets of “Growth” or “Democracy” (democracy doesn’t origin from ‘to mock”?) or what so ever: “You will recognize them at their fruits!” (NT such and such)
    Another questions would be how to stop this machinery.

  13. Socialism: Only Salvation for USA said on September 22nd, 2009 at 11:59am #

    Doug Page: Most people think that capitalism creates wealth for all, but its the opposite. The proof is that most third world poor countries have free-market economies and look how poor are they: Nigeria, Haiti, Colombia, Guatemala, Mexico, India, Somala and most countries full of poverty and homelessness (USA included) have free market economies which create a society of a few living real well with nice luxury Mercedes Benz, Shiny SUVs, Shiny BMWs and shiny new Volvos for a middle bourgeoise class (Which is a right-wing class and a minority). But create poverty, pain and slavery for the majority.

    So most capitalist free market privatized nations (USA included) have 2 exploiting, oppressor, right-wing classes (upper and middle), and the majority are lower-class.

    The problem is that the lower poor class, even though majority in number of citizens, is politically and economically weaker than the 2 oppressor right-wing class (Middle and upper) and thats why the upper and middle class always wins politically.

  14. Don Hawkins said on September 22nd, 2009 at 2:03pm #

    Salvation you forgot the system is now out of control of the so called leaders. They really don’t want people to know that little fact.

  15. Annie Ladysmith said on September 22nd, 2009 at 6:21pm #

    O! Dougie! You fit right in with this rable. Seriously, you expect people to consider the ‘opinions’ of associate SOCIOLOGY profs.x2.
    You are a Nut-job! Too much time spent with lawyers and politicians. You should consider that you may be mind-controled and that your ‘job’ is to throw nonsense to the masses or as i call them the American citizens,–o.k. they watch too much t.v. and are very fat but that makes your job even easier, dosn’t it??

  16. Socialism: Only Salvation for USA said on September 22nd, 2009 at 7:11pm #

    Annie Ladysmith: Who is Doug mind-controlled by? He is telling the real truth, that capitalism only creates poverty and pain for the majority, and wealth and stability for only a few. That is not mind-control, that is truth.

    If you think that capitalism creates wealth for all, you are the one who is mind controlled by CNN and FOX news.


  17. Socialism: Only Salvation for USA said on September 22nd, 2009 at 7:15pm #

    Annie: You should watch this film: “Hugo Chavez: On the Path to socialism”



    Venezuelan President Hugo Chavez discusses the advantages of socialism over capitalism while highlighting the reasons why authentic democracy is impossible to achieve under the latter in this special installment of the Speaking Freely series. Due to the American’s governments practice of privatization, foreign intervention, and violence, argues Chavez, America cannot become a truly humanistic society. Instead, Chaves proposes that the true voice of power is the voice of the people, and that the healthiest forms of government are the ones in which the citizens play a crucial role in its construction and development.

    Fans of controversial leader Chavez are encouraged to seek out this briefing on video, as it will likely never be aired in the United States.

    ~ Jason Buchanan, All Movie Guide


  18. Annie Ladysmith said on September 22nd, 2009 at 10:52pm #

    Hi Socialism Guy, the real truth is that the Shadow Gov./Matrix/the Luciferian Order wants to divide us all into little political groups that hate each other, so they can smash us to bits. Monopoly Capitalism/Free Market Capitalism, Socialism, Communism, Democrat, Republican, Anglican, Catholic, Mason, it makes no difference. These ideas and labelings mean nothing, but, we believe in them and because of that we think there is power in this nonsense–there isn’t.

    They have been working behind the scenes, backing or destroying both sides of any divide for their own purposes and gain, for centuries, from the beginning. Wars mean nothing to them, it is a way to decrease the population, and war more than anything, creates great wealth for these characters full of malevolence and with great knowledge to do evil.

    Check out the horrors of WWI were everyone in the whole world was brought to the slaughter, camels, elephants, Samoans, half of India, that’s the sort of stuff they love and it makes them very wealthy.

    They can smell the kill (after 9/11), they are fully armed with every weapon imaginable (Nuclear weapons, control of space, magnetic resonance, plagues and vaccines, and of course, the torture instrument of choice for every petty ‘law-enforcer’, the tazor, identity chips, and of course mind control which is scary and very advanced.

    So maybe i’m the nut but it’s the world you live in, it pays to ferret out the truth because when they come to enslave us, we will know who they are. That is were the power is, in the knowing. You’ll have to be as cunning as a serpent to keep your life as long as is necessary in the dawning of the New Order.

  19. mjosef said on September 23rd, 2009 at 2:58am #

    I think these are serious points, well-articulated. Yet as with all such jeremiads, the diagnosis is unmatched by the rhetorical flourish at the end. Our civilization is governed now by a supersystem, so to ask of “us” that we engage in some gigantic social rupture is illogical. There will be no revolution today. The supersytem will not collapse today. There is no social power welling up before the surface. “Collapse” is not imminent. A New Age is not dawning. The corporations and colleges that aided and profited from National Socialism are still with us, fat and controlling. We have our breads and our circuses, even if we do not have the faintest idea what to do with them. Cheers.

  20. Socialism: Only Salvation for USA said on September 23rd, 2009 at 7:50am #





    Nationalize Mcdonalds, nationalize Wendies, nationalize Pizza Hut, nationalize Mayfield Ice Creams, nationalize Duncan Hines cakes, Pillsbury cakes and Betty Crocker cakes. But we also need to nationalize Golds Gym, and phentermine diet pills in order to burn all those nationalized-foods !!


  21. mike said on September 23rd, 2009 at 9:27am #

    For anyone interested in having a begining, to understanding the fractional reserve banking system here are a couple of links.

    Paul Grignon provides a very level and eloquent description of the current system. ……Before providing the links.

    Did you know?…….When a loan is paid down, the money used does not go into a vault. The act of paying down a loan un-creates, or destroys the money. it is cancelled out against the loan.

    This is why more loans need to be made in order to prevent the money supply form shrinking.

    Furthermore, when the money is digitally created out of thin air to pay the principal on some hypothetical loan, the money to pay for the interest component of the loan is NOT created.

    Many argue quite correctly that this makes the entire banking system a ponzi scheme.

    My reference to money ‘destruction can be found in wikipeadia by searching using those key words. It is a top level entry and will be in the first page search results.

    Here are the two links to the Paul Grignon banking doco’s

    If you see my post Ned, i hope you view it. I love listening to you on 3cr.

    I think you might like it.



  22. Socialism: Only Salvation for USA said on September 23rd, 2009 at 10:38am #

    Annie: But connect the dots. The NWO Global-elites are capitalists, not socialists. Socialism and communism is the natural-reaction to the NWO and the global-elite big wealthy corporate bankers. Hugo Chavez represents in Venezuela the natural resistance and rational answer to the NWO elites.

    You have to study the history, origins and the philosophy of socialism.

    I know that many people hate “isms”. But socialism is the real deal

    Go to: http://www.marxists.org and http://www.socialistaction.org and http://www.marxist.com 3 great websites with introduction articles to SOCIALISM: THE NEXT STAGE IN HUMAN AND POLITICAL DEVELOPMENT IN THE WORLD !!

  23. Micko said on September 23rd, 2009 at 10:39am #

    Great article with some useful information.

    So two things mainly.

    Firstly, banks do not create the necessary funds into the money
    supply, at the time of creating a fiat debt dollar, to ensure there
    are enough fiat dollars to pay for the interest component.

    Secondly, paying down a loan un-creates the money.

    We now know that more loans need to made by banks to ensure there is
    enough money in the system to pay the interest on existing loans.

    From: http://en.wikipedia.org/wiki/Money_creation

    Almost all nations have central banks, and almost all of the world’s money supply is controlled not by governments, but by private bankers. Fractional-reserve banking creates money whenever a new loan is created. In short, there are two types of money in a fractional-reserve banking system, the two types being legally equivalent [3][4]:

    1. central bank money (all money created by the central bank regardless of its form (banknotes, coins, electronic money through loans to private banks))
    2. commercial bank money (money created in the banking system through borrowing and lending) – sometimes referred to as checkbook money[5]

    “When a commercial bank loan is extended, new commercial bank money is created. As a loan is paid back, the commercial bank money disappears from existence”.

    This point is often not factored in to many of these brilliant articles.

    How money is uncreated.

    Excellent article..

    And thanks!!

  24. Richard C. Cook said on September 23rd, 2009 at 6:52pm #

    Doug Page has it right.

  25. Mulga Mumblebrain said on September 24th, 2009 at 4:09am #

    I began to suspect the character of human beings as a child. I remember vividly that at Sunday School, when being indoctrinated in Christianity, that I was impressed by the drawings of a kindly Jesus. Kindheartedness seemed plainly to be good, but, alas, most of the adult congregants were uptight, controlling and not very kind at all. I lost interest in religion quickly, but continued to admire Jesus.
    At school I discovered that my teachers were often cruel, angry, unable to control their emotions and dull. There was a lot of corporal punishment and rank sadism. I had a good teacher once, so I knew that it was possible to like children and enjoy their company. I ended up in an exclusive private school, without girls, in high school. The teachers were even duller, the corporal punishment stranger, the buttocks being assailed rather than the hands, and the pupils mostly Rightwing oafs. Misogyny, racism, class hatred and smug self-satisfaction were rampant. This time I had three good teachers in six years, but the others were often really sinister bigots who resented dissent from the boys very strongly. Group think was mandatory.
    By then I had noticed that politics and the media were populated mostly by malignant liars and crooks. For a while the Labour Party actually proposed some vaguely socialist policies and contained a number of admirable people, honest, intelligent and trustworthy. When they came to power in 1972 they were destroyed by a violent, unprincipled campaign led by the Right and Rupert Murdoch’s evil empire of lies and liars.
    Things, of course, have gone downhill since then. We learned of global warming in high school science, and assumed that such a threat would be managed. Ha, ha. Politics has been shifted, remorselessly to the Right, and greed and egomania raised to the heights as the supreme virtues.
    Now, as the ecology of the planet collapses, as violence, cruelty, greed and lies dominate every sphere, I find it strangely familiar territory. I suspected from early on that something was awry with many, many people. That cruelty rather than kindness, antipathy rather than acceptance, rage rather than calm, were predominant in so very many people and that their malevolence somehow outweighed the good done by humane individuals. I think I know now what it is in action here, and why our predicament is inescapable. The people who prosper in market capitalism are psychopaths, and their characteristics, egotism, cruelty, mendacity, lack of human empathy, are rewarded by the system. In a sane society they would be kept far from power, but in market capitalism, where life and all the good things are denigrated and replaced by the dead matter of money and capital, these are the elect. But as they have severed their links to the life-force that once suffused this planet, they are, zombie-like, consuming the very fabric of the planet’s life support systems, probably in a vain, pathological, attempt to compensate for inner emptiness and inauthenticity.Plainly they have prevailed, mostly, I imagine, because of their ability to act in a manner detrimental to others, without scruple or remorse. So much the worse for the rest of us.

  26. DB Santana said on November 1st, 2009 at 10:55am #

    Nice article. A few corrections:

    1) When the Honduran military kidnapped President Zelaya on June 28 they took him to the US base in Palmerolas (Caño Soto), Honduras. There is no US military base in Nicaragua.

    2) I’ve never seen anyone advocate a world population growth rate of 3%. More importantly, the world population growth rate is nowhere near that figure, and in fact declined steadily during the 20th century; today it is around 1.14%.