Guest Post: The Necessity Of Resisting Financial Tyranny

Tyler Durden's picture

Submitted by Charles Hugh Smith from Of Two Minds

The Necessity Of Resisting Financial Tyrrany

It's time we defended liberty and democracy against financial tyranny: take your money out of Wall Street and the "too big to fail" banks, and stop funding their fraud, churn and subversion of democracy.

June 14th is a national day of resistance against economic tyranny. We all need to do our part. The good folks at have hosted this site: Acts of Resistance: What Are You Going To Do On June 14th to Rebel Against Economic Tyranny? Demonstrations and public actions are being planned in a number of cities.

If you cannot attend the public events, then consider taking direct action against Wall Street and the "too big to fail" banks.
Direct action boils down to this simple act: remove your money from their grasp. Your money fuels their exploitation, their fraud, their skimming, their lobbying and thus their sabotage of democracy. If we all take our money out of their grasp, then they will shrink or expire.

If you haven't already, move your IRA and other accounts out of Wall Street and "too big to fail" banks. Move the accounts to online firms, local credit unions or local banks. Yes, there are still locally owned and controlled banks. Moving your money to them is a direct-action statement against financial tyranny.

This can be painful. I had a 20-year business bond with my broker, and it was painful to pull the account away from him. But I explained why, and he understood; of course he understood.

Removing your shares and money is important because Wall Street and the TBTF banks use your money to churn profits for themselves. Your shares are sold short, your cash lent out on a daily basis, etc., and the proceeds are used to subvert democracy via lobbying and campaign donations, and to pay for the financial Elites' mansions and yachts and tax attorneys.

The TBTF banks reap enormous profits from credit card and debit card transactions. Using cash instead of paying them a slice of every transaction is another direct-action way to "starve the beast."

A critically important blow against financial tyranny is paying off all high-interest credit cards and other debt owed to Wall Street (margin debt) or the TBTF banks. You earn .01% on your cash, but the banks skim 18% on your credit card debt.

Although this isn't an option for most people, in the longer term, a very powerful direct action is paying off your mortgage and not getting another one. The same can be said of auto loans and student loans. The single most important direct action is to remove debt from their churn machine. Without any home mortgages to securitize, Wall Street can't spin off derivatives of that debt and book profits by packaging and selling it.

A debt-free society where citizens refuse to give their money to Wall Street is a society freed of the financial tyranny that has strangled the economy and democracy
. We as a society have been brainwashed into believing debt benefits us; but that is a lie. Debt actually enslaves us in more ways than one: it enslaves us financially, and gives the Power Elites the means to enslave us politically.

Demonstrations are good, but direct action by millions of citizens is even better. Don't take on $100,000 of debt you cannot dismiss in bankruptcy to get a marginal college degree; find another path that includes financial freedom. Don't fall for the consumerist fantasy of "aspirational spending"--focus on self-expression and enterprise, not on buying a lot of crap with debt that only enriches Wall Street and the big banks.

Focus on paying off debt, even if it means sacrificing consumption.Paying off debt is a political action now, not just a financial act in favor of freedom. Paying off debt, removing your money from the greedy grasp of Wall Street and the TBTF banks-- these are blows for liberty and against the financial tyranny which is destroying the nation.

Yes, we still have a mortgage, but we are devoted to paying it down in advance. We have no auto loans, no student loans, no credit card debt, and we use cash at the grocery stores and farmer's markets. Every dime we each remove from Wall Street and the TBTF banks is a direct action against tyranny and a meaningful reinforcement of democracy and liberty.

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ratso's picture

Yes indeed.  End your own financial enslavement now.

Zedge Hero's picture

Let's all do what we can to topple these bastards.  Here is my weekly newscast against the SOB's.

JW n FL's picture

It needs to be more edgy.. for instance Iran has Tripled its nuke out put to grow its base for medical research..


I could go on and if you would like good info not found on cable news.. you could always follow my posts here.

topcallingtroll's picture

Is my idea of germ warfare against goldman sachs not edgy enough?

JW n FL's picture

it is not hands on enough for my taste but who is not to say putting the rats in a cage and testings germs on them is not beneficial to man kind at a later date.. if you dont find a cure for the germs the next set of scumbag bankers will think twice before fucking "We the People" over again! LOL!!!

Fish Gone Bad's picture

Putting up public threats is absolutely insane. 

JW n FL's picture

he was joking Banker Boy! keep your panties on! no one has stuffed you in a cage and fed you any germs yet! LOL!!


This site is for entertainment.. if you politicly correct go some place else and fucking be however you want to be!


no one makes you come here and join in with the Banter! fuck free speech on line the last place you can kind of have some fun minus the world crying about the baby seals that the bad words kill is under even more attack! GREAT! FAN-FUCKING-TASTIC EVEN!!


Besides? dont you think that Law Enforcement would be more concerned with the Trillions being stolen from "We the People"? No? you think the SEC and the FBI are busy losing on online gambling sites and having to bust them instead of take the loss and watching porn? yeah me too! LOL!


as far as my entertainment and my 1st amendment rights.. fuck you and double fuck them! no, make that triple fuck them and you too!

JW n FL's picture

wait! I forgot! the Trillions being stolen from "We the People" are NOT! Their Job! We here typing on the internet are the Dangerous People that should be stoped at all costs! LOL!


and people wonder why the world is sooooooo fucked up??? duuuhhhhh!

Quixotic_Not's picture

Too late!

The banksters and politeers run & own it all!

Don't believe me, just ask the media that has an absolute news black-out on the Bilderbergers!

Even PBS' god Charlie Rose is an insider with the global elite, you think he's gonna help the wittle sheeple?

I love the smell of stupidity in the morning!

All Risk No Reward's picture

CHS, i enjoy your blog immensely.  thank you for the effort.  however, this statement...

>>A debt-free society where citizens refuse to give their money to Wall Street is a society freed of the financial tyranny that has strangled the economy and democracy.<<

indicates to me you don't understand that MONEY IS DEBT.  a debt free system is one that has no money to pay previous debts AND THE BANKERS FORECLOSE ON ALL DEBTORS - AND THAT WOULD BE ALL OF US AS THERE WOULD BE NO MONEY TO PAY PROPERTY, SALES OR ANY OTHER KIND OF TAX - OR MONEY TO BUY AND GOODS AND SERVICE!!!!

We must END DEBT MONEY FIRST.  we must end leverage and speculation.

and yes, they created debt money to enshrine themselves as our over lords.

or feudal lords.

Quixotic_Not's picture

FWIW, in the former Democratic Republic of the USofA, it was Unconstitutional to issue debt based currency (Art. 1, Sect. 10), but that didn't stop the tyrannical likes of Abe Lincoln or FDR...

The solution is simple, but the sheeple are too stupid...

The state of nature has a law of nature to govern it, which obliges every one: and reason, which is that law, teaches all mankind, who will but consult it, that being all equal and independent, no one ought to harm another in his life, health, liberty, or possessions ~ John Locke 1690

Hell, even the so-called enlightened don't get it...

Whenever the legislators endeavor to take away and destroy the property of the people, or to reduce them to slavery under arbitrary power, they put themselves into a state of war with the people, who are thereupon absolved from any further obedience. ~ John Locke 1690

Que Sera...

chumbawamba's picture

Great article (CHS), great quotes (QN).

I am Chumbawamba.

Dollar Damocles's picture

Paying down debt is nice for those who can.  But for many, default is the better option.  The entire problem of debt slavery, is precisely that many people are caught in a situation where they owe debts that are UNPAYABLE.  So they should not pay them.  They should honestly assess their financial situation and go into default, and the sooner the better.  IMO debt is an illigitimate contract anyway since the money was created from thin air by the banks with no effort, work, or creation of value.  The audacity of creating $s from thin air and then loaning to people at interest...  It is pure and utter fraud and theft.  If the american people understood our system of money and credit, there truly would be a revolution by morning (Henry Ford).

If you really want to strike a blow against the banks...  Default.  Put your assets into gold/silver bought with cash (secret) and show the banks the middle finger.  Both right, and brave IMO.

TheJudge2012's picture

Where do I put my shares?

ahamer's picture

Ask for delivery of the 'certificates' !

CH1's picture

Modern alternatives to slave money have been available for some years. (See

Problem is, people don't have the balls to use them.

Ah well...

tasmandevil's picture

Okay, I would propose for Tyler and likeminded ZHers to start our own bank, and  I would deposit my money, which ain't much, to get the thing rolling as in rolling rolling rolling

css1971's picture

Eh? No. QE3 was last week.


Did you miss it?

rocker's picture

It will be interesting to see how low they take the markets.  If they go too low this will also add to the outrage. 

RaymondKHessel's picture

All i see is a bunch of low foreheads who think they can change the world with dreams and talk. If youre not willing to act, give me a break and shut up.

Reese Bobby's picture

And I'm guessing you are one of the anarchist bunch who sees yourself as a leader in a Mad Max world.  "I will emerge from my trailer park and take my rightful place atop the Post-Apocalyptic Society!  Fuck, they turned the cable TV off again..."


Seriously, the low forehead reference was funny and makes it less likely you are a sister-fucker.  So feel free to share your ideas of, "action."

RaymondKHessel's picture

It's another great quote from THE RUNNING MAN. A movie every ZH'er should love as it basically is a future glimpse into the USA in 2019.

Prometheus418's picture

While the movie may be the thing that most are focused on, it should be noted that the Running Man was based off a book by Richard Bachman (Stephen King's pseudonym) and was most recently sold repackaged as a set of four novellas named "The Bachman books".  The other three were pretty good, too.

I mention it because the movie deviated quite a bit from the book, and personally I thought the book was much better.  If you're a fan of the movie, I'd check it out.  Another one worth investigating is "The Postman."  The movie kind of sucked, likely because it starred Kevin Costner, but the novel by David Brin was very interesting.

Movies are all well and good, but they're not a good vechicle for explaining motivations and underlying philosophical ideas.  Sometimes they do ok, and the oft referenced Dr. Strangelove is a great example of that, but the Running Man was just a standard action movie with a strange setting to most.

Whenever you see a movie you like, it's usually worth at least checking to see if it came from a novel.  If it did, odds are that the book will fill in a lot of guesswork.

topcallingtroll's picture

It is better to light a single banker than curse the darkness.

There are lots of good ideas here for general mayhem. Pick one and help us generate more

TheMerryPrankster's picture

Perhaps "ignite" or "immolate" rather than "light" would add  more visual impact to that sentence. Deny them their currency, debt, and they will die like vampires in the sunshine.

topcallingtroll's picture

Gather ye faggots while ye may.

Burning time is neigh.

johnnynaps's picture

Unfortunately, this country is soo polarized and divided that the obvious solution you mentioned above would not work. Even if the we were to deny the currency, the illegals who make substantially less will be more than willing to step in!

Hdawg's picture

Too late for the other side, Caught in a chase, 25 to life

jo6pac's picture

I've been a costumer of a small local bank for 20+yrs great service and if you bank on line there are No Charges. The bank has a A- rating. Shop local if possible and use cash.

Reese Bobby's picture

How do you know your local bank is not an outlier of the Federal Reserve Bank System?  I'm asking because I really don't know.  When I see FDIC insured accounts I don't know what "strings" come attached to that.  Maybe the author of this article knows?

TheMerryPrankster's picture

The FDIC, is an actual Federal agency, unlike the Federal Reserve which is a private group of fat cat financial rapists.

Reese Bobby's picture

The Fed is technically a Federal entity.  Don't disagree w/ you on what it is in reality.  My question was whether a bank had to agree to be part of the Federal Reserve Banking System in order to offer FDIC insurance...

Shell Game's picture

The point is, banks with higher ratings will be less likely to require FDIC backing. The next round in this crisis will likely see massive bank failures and loss of all deposits as the FDIC's 'backing' is revealed as....MIA.

Reese Bobby's picture

Your local bank will still be 12X levered against deposits and the asset will primarily be loans on your local real estate market.  They are simple but that doesn't mean they are nor risky...

Cdad's picture


It's time we defended liberty and democracy against financial tyranny: take your money out of Wall Street and the "too big to fail" banks, and stop funding their fraud, churn and subversion of democracy.


Well, well...and speaking of Wall Street "financial tyranny,"  Todd Schoenberger of Landcolt Trading LLC just announced his.  For those of you not sure who he is:

This is the guy who has been so balls to the wall bullish that he has put David Tepper to shame. After constantly pumping every single stupid bullish Wall Street cliche known to man, from "Global Growth" and "cheap stock valuations" and crazy "upside equity price target" in the "better second half"...including being bullish even as far back as yesterday...this tool waited until today to go bearish.  That's right, on today's Fox News broadcast Cashin' In, Schoenberger just announced that he is, "certain that the US is now headed for a double dip recession by the 4th quarter of this year."

Well, there you have it.  Yet another glaring signal that the undone Tepper Effect is a real problem, and Wall Street cares not a wit about its glaringly bad credibility.  Every ill informed tool has now obviously been sufficiently stuffed into the Pachinko equity market so as to green light tyrannical Wall Street bankers [and financial trading LLCs] to collapse it via their fractal algo driven "investment" vehicles...even the most ignorantly bullish of them all.

I just love it when these so called investment professionals step upon the stage and commit credibility surely Todd Schoenberger just did.

From his company's Linked in page:

LandColt Trading's mission is to proactively and ethically offer trading solutions for a client's "explore" investments with a passion for calculated risk-taking and thorough due diligence. The firm is committed to providing a best-in-class user experience. In every subscriber relationship, LandColt Trading strives to be a trusted partner. We continue to move where opportunity exists, bringing our clients and partners with us.

In this case, I guess, ethics include misinforming every single viewer who takes the BlowHorn [CNBC] seriously, and then selling them out with a 180 degree turn [in less than 24 hours] on a Saturday morning.

A picture perfect example of "their fraud, churn and subversion."


Bob's picture

Good info.  Last night I was channel surfing for something entertaining before crashing and stumbled across Cramer on CNBC.  Usually I avoid him, but his demeanor had so dramatically changed that I was halfway intrigued and watched 5-10 minutes of him. 

His new message is the market is taking a real shit and his "students" must intelligently dig in.  His voice was low and tender as he counseled their fear and disappointment. 

This shit is obviously programmed.  The fundamentals haven't mattered for years now--why such a change in the propaganda?

Cdad's picture

why such a change in the propaganda?

The propaganda has changed to match the new Wall Street mission, that of terrorizing DC politicians by crashing the stock market again, until such time as the Fed announces more monetary stimulus or the debt ceiling is lifted, or both.

This shit is obviously programmed.

NBC, via its long association with/ownership by GE, is the most clear example of a crony capitalist corporation existing in America today.  The network's mission is obviously to help Wall Street banks sign up more folk for financial services...not informing people about the state of the economy or financial markets.  CNBC coverage has become so irrelevant to the facts as to be absurd.  If our capitalistic system worked anymore, the network's license renewal would be in question...for so profoundly failing in its duty as a member of the 4th Estate.

Bob's picture

You're right--a way naive question!  Can't believe I said that . . . I remember thinking it as I changed the channel . . . sometimes the damn suspension of disbelief just creeps back over you unawares. 

Blano's picture

Your summary of Cramer last night has convinced me to go long by the boatload next week.

onlooker's picture

Changing you bank account to a local bank, from a draconian bank, is good for the community. It provides money for local loans.


Support your community and bank with a local bank or credit union.

Reese Bobby's picture

How do you know your local bank is not an outlier of the Federal Reserve Bank System?  I'm asking because I really don't know.  When I see FDIC insured accounts I don't know what "strings" come attached to that.  Maybe the author of this article knows?

Pure Evil's picture

From the following link:

"The Federal Reserve comprises the Board of Governors in Washington D.C., and twelve regional Federal Reserve Banks."

"The twelve Federal Reserve Banks provide banking services to depository institutions within their district, and to the federal government.  For depository institutions they maintain reserve and clearing accounts and provide various payment services.  These include collecting checks, electronically transferring funds, and distributing and receiving currency and coin.  For the federal government they act as fiscal agents.  As such they maintain the Treasury Department's transaction account; pay Treasury checks; process electronic payments; and issue, transfer, and redeem U.S. government securities."

"The nation's banks can be divided into three types according to which governmental body charters them and whether or not they are members of the Federal Reserve System.  Those chartered by the federal government (through the Office of the Comptroller of the Currency in the Department of the Treasury) are national banks, and by law are members of the System. 

Banks chartered by the states are divided into those that are members of the System and those that are not. State-chartered banks are not required to join the System, but they may elect to become members if they meet the standards.  As of June 30, 2006, there were a total of 7,480 commercial banks nationwide, of which 2,548 were members of the System.  The Federal Deposit Insurance Corporation is responsible for supervising non-member banks.

Member banks must subscribe to stock in their regional Federal Reserve Bank in an amount equal to 3 percent of their capital and surplus.  They receive a 6 percent annual dividend on their stock and may vote for Class A and Class B directors of the Reserve Bank.  However the stock does not carry with it the control and financial interest that is normal for the common stock of a for-profit organization.  It offers no opportunity for capital gain and may not be sold or pledged as collateral for loans.  The stock is merely a legal obligation that goes along with membership."

From this you should be able to visit your local bank's website and determine whether it is a member of the System.

Obviously, taking your money out of Wall Street banks will hurt them, it will not hurt the Federal Reserve Bank since all banks are dependent upon the FEDS to process financial transactions. Do you think your local bank keeps everyone of its depositors money on hand? They all lend it out, whether it's to your neighbor in the form of a home mortgage or to other banks, including the Federal Reserve Banks, using various financial obligations. What a Wonderful Fascist World.

This link should answer any questions regarding any reserves your bank holds for it's depositers.

"Adequate Reserves Do Not Imply Solvency 

Reserves comprise funds on deposit at the Fed plus vault cash.   A bank can hold adequate reserves and still be insolvent if its total assets, including loans and securities, do not cover its liabilities.  However a bank in good standing can always borrow in the money market or at the Fed to meet its reserve requirements. 

The measure of a bank's solvency is its capital, i.e. assets minus liabilities.  The Fed imposes a lower limit on a bank's capital relative to its risk-weighted assets to provide a margin against insolvency.  That ratio is what ultimately limits a bank's deposit creation through lending."

A little unknow fact is that even though you hold a non-money market checking account, by which checking account monies are not necessarily used as loan-out funds to other institutions, most banks will transfer your checking account funds to a money market fund overnight and then transfer them back to your account each day. Money market funds are generally used to loan money to institutions short term for profit. With or without your consent or even knowing what's happening. If you open up a money market account, then the following diddy should put any delusions to bed about whether your local bank is pimpin' out your whore money to other johns.

"The U.S. money market is a huge and major part of the nation's financial system in which banks and other participants trade hundreds of billions of dollars every working day.  It is a wholesale market for low-risk, highly liquid, short-term debt instruments.  They include short term U.S. Treasury and federal agency debt, negotiable bank CDs, bank deposit notes, bankers' acceptances, short-term participations in bank loans, municipal notes, commercial paper, Federal funds, and Eurodollars.

The money market accomplishes several vital functions.  One is shifting vast sums of money between banks.  This is required because most large banks need more funds than they obtain in deposits, whereas many smaller banks have more deposits than they can profitably use internally.  The money market also provides a means by which funds of cash-rich corporations and other institutions can be funneled to banks that need short-term money.

The money market is where the U.S. Treasury can sell huge quantities of debt with ease.  It is also where the Fed carries out its open market operations to control interest rates and provide for growth of the money supply.  The market is where participants determine the term structure of short term interest rates affecting the yields on Treasury bills and commercial paper of different maturities.  It has also become an international short-term capital market where much of the dollar denominated trade by foreign entities is financed."

In my opinion only, no bank is safe from the fascist practices of the Wall Street financial empire.

Your bank may be more conservative in it's lending practices, but every bank has lending liabilities, some worse than others.

Reese Bobby's picture


From another source:

"In the United States, a state-chartered bank that has opted not to join the Federal Reserve System. Such banks are required to place a certain number of their accounts at a Federal Reserve Bank so as to meet reserve requirements. However, nonmember banks allowed access to the Federal Reserves's discount window are not required to purchase stock in the Federal Reserve. In general, nonmember banks are less regulated than member banks. For example, they are allowed to keep at least a portion of their reserves in interest-bearing securities. They are subject only to the laws of the states in which they are chartered." So it doesn't sound to me like you remove most of your money from the Federal Reserve Banking System by using a state-chartered bank even if it is not part of the Federal Reserve System.  Maybe the organizers of this Big Day should have done a little research first?  Hope I am wrong about this... Finally, you should change your ZH name and avatar man.  Satan is nobody to play with and he is real.  Seriously.  I am supposed to tell you that as a Christian.
Cthonic's picture

How do you know your local bank is not an outlier of the Federal Reserve Bank System?

Every bank chartered under the National Banking Act is required to be a member a regional Federal Reserve Bank.  Such a bank will have "National", "National Association", or "N.A." as part of its legal name.  State chartered banks may opt for membership but most do not.  Remember that the FRS provides liquidity to member banks in times of crises, and as such, keeping a tangible sum of money in a non-member bank could be self-defeating as they have no access to the lender of last resort.

When I see FDIC insured accounts I don't know what "strings" come attached to that.

The biggest strings are the ones in the fine print of your account agreement.  Does your checking account pay interest?  Then it could be a "NOW" or money market account and not a "demand deposit" account, which makes a big difference on funds availability.  FDIC only covers checking, savings, and CDs, and no other products offered by a bank.

However, the biggest attached string is the fact that the Deposit Insurance Fund only has $81B in assets (including $29B in receivables) versus $88B in liabilities.  In a banking crisis, any monies needed by the FDIC to pay off depositors would have to be borrowed from the US Treasury, itself currently at its statutory public borrowing cap.

Reese Bobby's picture

You can see from my comment #1361528 above that we are both learning as we go.

It seems State chartered banks that do not choose to be members of the Federal Reserve Banking System still have to keep reserves there.


On another topic, what does Smith mean by "online accounts."?  He should clarify or stop dispensing half-ass advice, IMO.

SerfDude's picture

Reese Bobby: internet only banks have been around for years. Try a google for something like "online only banks" and you'll find some clarification.