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I'm A Fiat Slave, And So Are You

Tyler Durden's picture


Submitted by Charles Hugh-Smith of OfTwoMinds blog,

Fiat money is at base a form of indirect wealth transfer from those forced to hold the money to those issuing the money.

I describe the pernicious servitude created by debt as debt serfdom, as serfdom implies a neofeudal arrangement that requires serfs' acceptance of this financial yoke of servitude. In other words, debt is freely accepted as the line of least resistance in a system that incentivizes debt and places high barriers to debt-free independence from a Status Quo operated to benefit the owners and issuers of debt, not the debtors.

Correspondent Jeff W. has identified an even more insidious form of monetary servitude that he calls fiat slavery, as the servitude is enforced by fiat (unbacked government-issued) money.

In other words, being forced to use state-issued fiat currency is a form of servitude, as fiat money is at base a form of indirect wealth transfer from those forced to hold the money to those issuing the money.

Beyond this state-enforced wealth transfer from citizens to the state, there is a secondary wealth transfer going on in any fiat-money system: the neofeudal financial nobility who are closest to the money spigot get to buy whatever real-world assets and income streams offer the best return before the money trickles down to the debt-serfs paying interest and taxes.

For example, the financial nobility can borrow billions of dollars at near-zero interest from the Federal Reserve, and use this nearly-free fiat money to buy student loans that pay 7+% annually. They can also snap up houses for cash that the nobility then rents to debt-serfs who have been outbid by those with the extraordinary advantage of unlimited access to the Fed's nearly-free fiat money.

Here is Jeff's commentary:


In a world where every country prints fiat money, the entire human race today, except for its money masters, is subjected to fiat slavery.

Almost everyone understands what it means to be a tax slave. It means that people must work several months of the year for the benefit of the taxing authorities. Taxes in the U.S. today are several times higher than they were 100 years ago, and at present-day tax levels, today’s Americans are rightly called tax slaves.

What it means to be a debt slave is also easy to understand. It means that one must spend a large fraction of one’s time to earn money to pay creditors. Millions of Americans today are mired deeply in debt, but today’s America is also a country where if you personally stay out of debt, the government will go into debt for you.

Each American taxpayer is on the hook for his or her share of over $17 trillion in debt that government admits to; the real debt total is much higher.

 Government leaders are eagerly plunging us ever deeper into debt each year.

Most Americans also have personal experience of being a wage slave. It means that a person has no way to make a living except by selling his labor into a glutted market. Thomas Jefferson hoped that most Americans could own their own farms and thereby profit from capital improvements that they made through their own efforts. Such Americans could be their own bosses and escape wage slavery. But today we live in an age of huge factory farms, and it is more difficult than ever to establish or run any small business. Thus wage slavery is the norm for Americans today.

But few people understand what it means to be a fiat slave. Being a fiat slave means that one lives in a country where the machinery of money printing is used to maximize wealth extraction from its citizens.

How do they maximize the wealth they can extract through money printing? 

First of all, it is done by increasing of the volume of transactions that take place in a given fiat currency. Each newly-printed unit of fiat is a drop in the bucket in terms of the inflation it creates, and more fiat can be printed without causing serious inflation if a country has a bigger bucket.

For example, Canada’s GDP is about 11% the size of America’s. At first glance this might be taken to mean that Americans can print nine times more dollars than Canadians. But we must also remember that U.S. dollars circulate throughout the world, and Eurodollars and petrodollars also add to the total of U.S. dollar transactions.

Because of extraterritorial dollar circulation, the U.S. might actually be able to print 20 times more than Canada without causing serious (in terms of causing political problems for the money printers) inflation. From this we see why money printers may want to fight wars to protect America’s dollar circulation areas in the Middle East or in Afghanistan, where much of the opium trade is transacted in dollars.

But a country’s fiat transaction volume is only part of the equation. A more important part of the equation is the inflation level. Imagine two countries: Country A with an annual fiat transaction volume of 100 trillion units per year and Country B with a volume of 50 trillion. Everything else being equal, Country B can only print half as much fiat each year to give to its government and its banking elite.

But suppose further that the inflation rate in Country A is 5% absent any money printing, and the inflation rate in Country B is negative 2% due to global wage arbitrage, regulatory suppression of small businesses, and high unemployment. Suppose further that a real inflation rate of 5% is the money printers’ upper limit because it is the maximum asset erosion that wealthy bondholders will tolerate. Now we see that potential money printing in Country A is reduced to zero, while potential money printing in Country B is 3.5 trillion units (50 trillion times seven percent).

American money printers thus have trillions of dollars in incentive to support deflationary policies, which may include global wage arbitrage (sending work to the country where labor is cheapest), suppression of job creation by small businesses, suppression of private-sector labor unions, support for open borders immigration, commodity price suppression through market interventions, support for genetically modified seeds so as to push agricultural prices down, support for owners taking a larger share of corporate revenues so as to reduce labor’s share, and support for high levels of consumer debt so as to dampen inflationary pressure in a nation of demoralized debt slaves. All of these oppressive policies enrich the money printers at the citizens' expense.

Tax slavery, debt slavery, wage slavery, and fiat slavery are four methods that elites employ to extract wealth from the people. To this list we should also add their encouragement of Ponzi gambling. Ponzi asset bubbles are constantly being created and citizens are encouraged to go into debt to “cash in” on bubble profits (or get wiped out in bubble crashes). Those five methods are the major wealth extraction methods they use.

Those who support the cause of human freedom must resist tax slavery by insisting on a government that keeps its spending down to the bare basics. Free people must also support a culture that discourages people from getting into debt and encourages them to get out of debt and stay out. They must demand that government debt be rolled back to zero.

Policies that favor capital accumulation in families and a supportive legal environment for small businesses are the antidotes to wage slavery, and free people must also demand that there be zero wealth extraction from the citizens through money printing. That can best be done by requiring 100% gold backing for currency and eliminating fractional reserve banking. 

Eliminating the inflation that comes from money printing will also go a long way toward eliminating asset bubbles and Ponzi gambling on asset bubbles.
Older Americans have watched as a once-free people have been reduced to slave-like conditions. Not only has wealth been ruthlessly extracted from the people, but today’s surveillance state is more intrusive than ever, and the police are increasingly insolent and imperious.

What are we going to do? A necessary first step is to take the blinders off and to see clearly how elites are victimizing you. A second step is to figure out what practical steps you can take as an American to secure the blessings of liberty for yourself and your posterity. Freedom is not free, as the saying goes, and the price of freedom is not only eternal vigilance, but also intelligent action. We should begin this work today. 

Thank you, Jeff, for describing our fiat bondage. Awareness of the sources of wealth transfer and monetary servitude is the first step forward.


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Wed, 05/21/2014 - 15:00 | 4782201 hardmedicine
hardmedicine's picture

With the insurance company and bank bailouts we are all just communists now. Barter. That is the only way in which to take back your power. That and gold and silver. But the gold and silver are just long-term insurance. Fiat enables them to manipulate that too. Eyes wide open!

Wed, 05/21/2014 - 15:01 | 4782202 FinalEvent
FinalEvent's picture

Well not really, I converted all my currency to all but FIAT.

Wed, 05/21/2014 - 15:10 | 4782218 john39
john39's picture

the end is certainly forseable, to anyone paying attention.  not like this sort of thing hasn't happened before... posted this another thread, but worth reposting.  Americans, would you like a glimpse at your future? simply look to the past:

"The dying days of a regime: This photo, taken in Shanghai in 1949, shows a queue to exchange worthless paper money for gold"

Wed, 05/21/2014 - 15:14 | 4782231 Obama_4_Dictator
Obama_4_Dictator's picture

File not found

Wed, 05/21/2014 - 15:33 | 4782286 BTFDemocracy
BTFDemocracy's picture

What about Bitcoin?

Wed, 05/21/2014 - 15:38 | 4782305 Four chan
Four chan's picture

the true feds dual mandate since inception;

enslave a free people to debt servitude, capture all assets through boom and bust cycles it creates using worthless specie.


mission accomplished

Wed, 05/21/2014 - 15:53 | 4782321 chumbawamba
chumbawamba's picture

Father Coughlin exposes the Federal Reserve...back in 1940:

On December 23, 1913--27 years ago--a Federal Reserve Act was approved by the Congress of the United States. This Act permitted bankers to establish a bankers' bank- or, to be more precise, 12 bankers' banks situated one in each regional division of the United States of America... In other words, the Federal Reserve Banking System is a privately owned corporation. It is not a Government owned corporation as some persons believe....It is both amusing and alarming to learn that not only some factory workers but also some professional and business men labor under the impression that the Federal Reserve banking system is a Government owned corporation.

I am Chumbawamba.

Wed, 05/21/2014 - 18:46 | 4782989 J S Bach
J S Bach's picture

How easy it would be to just say "no" to all of this usurious bullshit.  This is precisely why "they" have to control the media, advertising and educational institutions along with their counterfeit institutions known as "Central Banks".  As long as the majority of people remain uninformed as to this (not that complicated) system of servitude, "they" remain in power and the beneficiaries of the sheep's blissfully unaware largess.


And although this makes many readers uncomfortable, it is also why they must perpetually villainize the National Socialist economic policies which brought Weimar-depressed Germany almost instantly out of the Great Depression.  No, it wasn't excessive arms buildups, etc... it was purely an economics switcharoo in which "money" served the people... not the other way around (which is what central-bank-debt-based-usury-currencies are all about today).


Folks, when the great reset occurs, we must pray that there are enough educated and "untouchable" people in charge who will at least propose the end of all debt-based money systems.

Wed, 05/21/2014 - 18:52 | 4783009 Help Is Not Coming
Help Is Not Coming's picture

"How easy it would be to just say "no" to all of this usurious bullshit."

You CAN say "No" to this usurious bullshit. Just redeem your FRNs for lawful money by going to any Federal Reserve Bank, walking in and ask to "redeem them for lawful money pursuant to Section 12 USC 411." Better yet, write that as a restricted endorsement when you deposit any check into your account. The bank then can't fractional reserve lend out your money since it's no longer a FRN in your account.

So yes, you can just say "No".

Wed, 05/21/2014 - 15:27 | 4782253 Headbanger
Headbanger's picture

Problem is that nobody gives a fuck now really because they all know there isnt a thing they can do about it.

It's like everybody is just waiting for the hammer to drop and get it over with finally so we can take it from there.

Obama has killed this country with apathy.

Wed, 05/21/2014 - 15:44 | 4782320 Four chan
Four chan's picture

the drug addict kennedy, bastard lbj, thief and his cfr buddy nixon kissinger, idiot ford,

dreamer carter, blockhead reader reagan, cia chief bush, criminal philanderer clinton, and

retard puppet gw bush, had some thing to do with it too in all fairness.

i think the two party system is to blame generally as the common link.

Wed, 05/21/2014 - 16:25 | 4782485 TSTM
TSTM's picture

It goes back much further. First the foundation had to be weakened.

Wed, 05/21/2014 - 15:46 | 4782327 Oldwood
Oldwood's picture

They have stolen our future through financialization and debt. There is no money left that is not a claim on future productivity. Terms get longer while the interest get lower, proof that there is no desire for repayment, only the maintenance of debt. At these low rates we know relative to inflation there is no profit in credit, so what other reason do they have other than the stranglehold of permanent indebtedness. We sold ourselves into indentured servitude with no way to earn our release.

Wed, 05/21/2014 - 15:57 | 4782353 chumbawamba
chumbawamba's picture

They know the principal can never be repaid.  They just want to collect the interest payments on their fake money loaned out of thin air until it all implodes.  They sell air that they don't even own for substance (and thank you for the down payment as well).

I am Chumbawamba.

Wed, 05/21/2014 - 16:25 | 4782489 p00k1e
p00k1e's picture


Nah.  The 2000 election should have been finalized with a run-off election and not the Supreme Court.  The Supreme Court had no business getting involved.

Not to mention corporations are now people. 

Wed, 05/21/2014 - 15:11 | 4782219 Anusocracy
Anusocracy's picture

Debt serfdom is not the correct phrase.

It is government serfdom.

Wed, 05/21/2014 - 15:10 | 4782217 McMolotov
McMolotov's picture

Turn on, tune in, drop out. Those damn dirty hippies were on to something.

Wed, 05/21/2014 - 16:33 | 4782513 Raging Debate
Raging Debate's picture

Hardmedicine - Yes, after facism comes communism. The latter part dictated how you will spend your last few pennies on another OR ELSE. We got to fund the rise of the east and now get a hollowed out country and communism. How quaint.

Wed, 05/21/2014 - 15:02 | 4782203 sleigher
sleigher's picture

It's the martians.  The money masters are martians.

Wed, 05/21/2014 - 15:18 | 4782240 Headbanger
Headbanger's picture

No... Did you watch the entire video? 

You'll see it explain there's a well know group of humans who were involved as well.

Wed, 05/21/2014 - 15:02 | 4782206 LawsofPhysics
LawsofPhysics's picture

Stop accepting fiat in exchange for your labor asshat.  Demand something more real.

nothing changes otherwise.

Wed, 05/21/2014 - 15:19 | 4782243 CH1
CH1's picture

Stop accepting fiat in exchange for your labor... nothing changes otherwise.

Yes, and that's where the stackers fail. The never USE their stacks.

The Bitcoin kids have it right: If you want results, you have to USE your non-state money.

Wed, 05/21/2014 - 16:24 | 4782482 LawsofPhysics
LawsofPhysics's picture

I have been using and accepting PMs for quite a while. In addition, I trade labor for labor all the time.  My mechanic wants some fresh veggies, my cars need some work...

Wed, 05/21/2014 - 15:03 | 4782207 AmericasCicero
AmericasCicero's picture

Blah Blah gold standard blah blah no fractional reserves.  A dreamworld.  Won't be able to do anything about it until they collapse on their own.

Wed, 05/21/2014 - 15:03 | 4782208 kchrisc
kchrisc's picture

Liberty is the opposite of obedience.

The most powerful weapon the American people have is Rejection.

The system of fraud and theft that has been built up upon the backs of the American people is dependent upon out backs. Withdrew our backs, and the whole thing collapses. This is our greatest weapon.

Quit Paying--put it into food, steel and lead, and precious metals, etc. They stole what ever "debt money" they loaned you in the first place via fraudulent-reserve banking and soon you won't be able to pay them anyways, so just stop now.

Quit Obeying--If they are in violation of the Constitution then they are criminals and not legitimate.

Quit Playing--Quit being a tool for them to use.

The Four Rs
Rejection: Quit paying, quit obeying, quit playing
Revolution: It is inevitable, so prepare, as they are.
Retribution: The guilty must answer for their crimes against the American people and the Constitution.
Restoration: Restore the American people, country and Constitutional republic.

Wed, 05/21/2014 - 15:22 | 4782249 CH1
CH1's picture

Aside from treating the Constitution as kind of sacred, I nominate this for Post Of The Day!

Why should anything change so long as we keep obeying?

Wed, 05/21/2014 - 15:37 | 4782301 Oldwood
Oldwood's picture

The challenge in war is to win without becoming your enemy. It is important to me to be honest and true to my word. If I feel the system is corrupt, the answer does not come to me that corruption is the solution. The answer is to simply not participate, which does not mean to perpetrate fraud and deceit, nor fail to live up to the promises I have made. As in war, it is important to choose our battles wisely.

Wed, 05/21/2014 - 16:54 | 4782590 kchrisc
kchrisc's picture

"...the answer is to simply not participate..."

The most powerful weapon the American people have is Rejection.

The system of fraud and theft that has been built up upon the backs of the American people is dependent upon out backs. Withdrew our backs, and the whole thing collapses. This is our greatest weapon.

Quit Paying--put it into food, steel and lead, and precious metals, etc. They stole what ever "debt money" they loaned you in the first place via fraudulent-reserve banking and soon you won't be able to pay them anyways, so just stop now.

Quit Obeying--If they are in violation of the Constitution then they are criminals and not legitimate.

Quit Playing--Quit being a tool for them to use.

Wed, 05/21/2014 - 16:03 | 4782380 bbq on whitehou...
bbq on whitehouse lawn's picture

Something must be solid ground or a line that is never crossed.
If you want to make that line the constitution it's as good a place as any.

Wed, 05/21/2014 - 16:52 | 4782584 kchrisc
kchrisc's picture

It is not that the Constitutional is sacred or anything, but it is currently "the law of the land."

The ideas is to have a clear goal to work toward, the Restoration of the Constitutional republic, instead of being divided over a goal.

We, the American people can debate and argue about changes AFTER we have ousted the criminals from DC, the city halls, the county seats and their bankster masters.

Restore what we have, or at least are supposed to have, then look to the future.


The Four Rs!

Thu, 05/22/2014 - 09:44 | 4784519 goneYonder
goneYonder's picture

I haven't read anything close to a decent rebuttal of Spooner's No Treason: Constitution of No Authority. Could someone throw a link up if there is one? 

But, the Constitution would be a fine place to start if people wanted to improve conditions. 

Wed, 05/21/2014 - 15:50 | 4782339 Seize Mars
Seize Mars's picture

Ok I hear you bro. But try to be practical for a second. If, for example, one refuses to pay taxes, armed men will show up. Do you understand?
That's fine as long as every guy on my block is similarly situated, but they aren't. Most people aren't really ready for a swat raid.

Wed, 05/21/2014 - 16:36 | 4782523 p00k1e
p00k1e's picture


People value life too much.  The ease of getting onto the Government disability dole testifies.

Edward and Elaine Brown tried all that you cats speak of.  End the end, they are in jail by themselves while we’re out here indirectly paying for their upkeep.

"The Browns filed numerous pre-trial motions, contending (among other things) that the United States is owned by Paine Webber...."

Wed, 05/21/2014 - 17:52 | 4782803 hardmedicine
hardmedicine's picture

ha.. spoke to a gentleman who actually is on Elaine Brown's visitor list here in Texas. They are not allowed visits from the general public, only family. This is not the way to Valhalla.. you can only withdraw from the system , but you have to pretend to pay taxes just as they pretend to be working on behalf of our benefit.

Wed, 05/21/2014 - 17:02 | 4782624 kchrisc
kchrisc's picture

Every American needs to understand first that not paying, not obeying, and not playing is their first and most potent weapon.

With that said, every American understanding that needs to look at their situation and make a decision of what is best for them.

Doesn't have to start with taxes. Preferably it starts with debt and progresses from there. If you are struggling working 3 jobs to pay your mortgage, stop, save the wealth, and deny it to the bankster, and live in the home for a year or more. Put the wealth into gold, silver, steel and lead. They stole the money they loaned you in the first place.

Stop paying on the credit cards, stop paying on the student loans, just stop. Then looks for more ways to not pay, and more ways to not obey and more ways to not play.


Like I said, "Liberty is the opposite of obedience."

Wed, 05/21/2014 - 17:14 | 4782666 kchrisc
kchrisc's picture

Seize Mars

The most important thing is for a person to take an ACTIVE step to Restoring Liberty to themselves. A person may say "no more" and quit everything and risk all now. Or a person may look at his situation and decide that there is nothing that he is able to do now.

Both are fine. so long as a person is ACTIVELY considering what his options are in Restoring Liberty to himself, and his family.

However, hiding behind, "They may come for me, so I won't even think about it much less do anything," etc. is not an ACTIVE response. That is just more of the same--tacit obedience.

Be thinking about Liberty,  what you can do, and do what you can.


"Liberty is the opposite of obedience."



Wed, 05/21/2014 - 17:44 | 4782782 Radical Marijuana
Radical Marijuana's picture

Too bad I have to almost totally agree with your comment kchrisc. I WISH that your analysis was not correct, but it appears unavoidable to me. Of course, I already knew everything in this article above, for quite a while. However, I find it to be the work of just another run of the mill reactionary revolutionary, when come to "solutions." So sad, but I think that too of your last line: "Restore the American people, country and Constitutional republic."

It is nostalgic nonsense to think we could resolve problems such as globalized electronic frauds, backed by the force of atomic bombs, by going BACKWARDS, to restore any old-fashioned impossible ideals. Going forward through a series of profound paradigm shifts in the philosophy of science is what is necessary for revolution in a technologically based civilization.

In my opinion, the ruling classes are criminally insane, and will keep on pushing events towards the situations that you outlined, kchrisc.  However, resistance then will only become a necessary phase of the psychotic breakdown of the social pyramid systems, based on runaway legalized lies, backed by legalized violence, driving themselves through their own mad self-destruction, which will necessarily provoke the rejection responses to those developments. Such rejection responses shall actually only contribute to the collapse into chaos. The fantasies about "restoration" may well motivate some opposition. However, they continue to propose magical words as the basis of solutions, which will be able to go backwards, to realize the same old-fashioned impossible ideals, which actually never worked, but always made the opposite happen in the real world.

Wed, 05/21/2014 - 21:28 | 4783415 Counterfiat
Counterfiat's picture

- Liberty is the opposite of obedience.


No. Obedience to the good way is liberating. Govt obedience to a good constitution, provides the framework for a good society. Liberty can only be found in the embracing and living the right way. Jesus' commandments are not grievous, they give liberty, and grace is available to empower a meaningful life.

Wed, 05/21/2014 - 15:04 | 4782211 bugs_
bugs_'s picture

debt serf! fiat slave!

tastes great!  less filling!

Wed, 05/21/2014 - 15:06 | 4782213 The Limerick King
The Limerick King's picture



I'm trying so hard just to save

The interest I'm getting is grave

They're forcing my hand

I'm centrally planned

Their fiat has made me a slave!

Wed, 05/21/2014 - 15:46 | 4782241 nope-1004
nope-1004's picture



Geithners new book at real tell

About how the economy fell

Except the truth is in hiding

Ben and Janet aren't confiding

And for that may all three rot in hell.

Wed, 05/21/2014 - 15:13 | 4782215 JustObserving
JustObserving's picture

Fiat allows the elites to engage in permanent war.

The Vietnam war cost only $738 billion in 2011 dollars and yet forced the US off the gold standard on August 15, 1971.

The wars in Iraq and Afghanistan cost $6000 billion and Obama can still engage in wars in Syria and Ukraine and wherever else he pleases.

Fiat currency is a threat to world peace.

Wed, 05/21/2014 - 15:21 | 4782250 AUD
AUD's picture

It also allows elites to magically turn shit into money, giving the illusion for a time at least, that everybody is rich, since even the poorest, stupidest bastard shits.

Wed, 05/21/2014 - 17:08 | 4782642 assistedliving
assistedliving's picture

Bravo JO....and blame Darth Cheney for the last $6T

Wed, 05/21/2014 - 15:11 | 4782220 imbtween
imbtween's picture

why is is called a "transfer of wealth" when it is outright theft? If I rob a 7-11, it is not referred to as a transfer of wealth from the cash register to my pocket, is it? What bullshit.

Wed, 05/21/2014 - 15:27 | 4782269 OC Sure
OC Sure's picture

Taxes are robbery. Counterfeiting is theft.



Wed, 05/21/2014 - 15:11 | 4782221 SheepDog-One
SheepDog-One's picture

A no shit Sherlock article.

Wed, 05/21/2014 - 15:12 | 4782224 Unknown User
Unknown User's picture

How idiotic.  Fiat is not the problem.  Who issues fiat is.

Watch the video...




Wed, 05/21/2014 - 15:19 | 4782244 centerline
centerline's picture

+1.  It is the "who" that matters.  Not the "what."


Wed, 05/21/2014 - 17:40 | 4782761 SharkBit
SharkBit's picture

Yeah, descent video.  A bit boring but the point is simple.  Thanks.

Wed, 05/21/2014 - 15:13 | 4782229 A_latvian
A_latvian's picture

Developers developers developers developers use BITCOIN BITCOIN BITCOIN BITCOIN!

Wed, 05/21/2014 - 15:25 | 4782260 OC Sure
OC Sure's picture




This is wrong.

There is no such thing as fiat money.

A unit of measure is not money because of a decree.

The decree is required because it is counterfeit instead of money.

Money comes from the result of work, not a decree.

Walk away from the terms of tyranny, please.

Wed, 05/21/2014 - 15:47 | 4782330 nope-1004
nope-1004's picture


Wed, 05/21/2014 - 15:25 | 4782264 yrbmegr
yrbmegr's picture

It all comes down to the fact that people compete, and if you don't compete you will get starved out by those who do compete.  So, fiat, debt, wage, metal, whatever.  There is no owning your own farm to sustain yourself.  If you try to live an insular self-contained life, you will get squeezed by those who compete.

Wed, 05/21/2014 - 16:12 | 4782428 hardmedicine
hardmedicine's picture

hmm. That's funny. I know several people who are self-sustaining on their own land. One completely self-contained with solar and well water. Are you saying they are going to be squeezed off their land?

Considering some have owned their land since Texas became a state I just don't see it.

Wed, 05/21/2014 - 16:38 | 4782532 p00k1e
p00k1e's picture

"self-sustaining" and "Solar" don't really fit, now do they. 


Wed, 05/21/2014 - 15:28 | 4782273 Oldwood
Oldwood's picture

I'm tired of the word slave. It is used to somehow defer responsibility for the circumstance we find ourselves. If we surrender our freedom (something largely defined individually) for the sake of a warm meal and a dry cot, are we a slave? Have we not exercised our freedom to choose, regardless of how shitty a choice? Is someone addicted to drugs a slave? Someone sold them the stuff, caring little of their customers outcome, but was that not a free choice? Will we only be free of "slavery" when we are only left with good choices, ones that we can no longer harm ourselves with? Is this not what the government claims to be doing, by controlling our healthcare and everything we are exposed to including the air that we breath? Slave....what a useless term. Slave to our own needs and desires...maybe. But I think not, just being who we are.

Living in the garden of Eden was a pretty good gig. All we had to do was follow the rules, avoiding the temptation. Instead we wallow in the temptation as proof of our liberties and then scream bloody murder when the serpent takes a bite from our ass.

Wed, 05/21/2014 - 16:18 | 4782417 bbq on whitehou...
bbq on whitehouse lawn's picture

Do you have a choice? If so is it a real choice.
In game design, if you give for one thing and take for the other is it a choice?
No. Both choices much be equal or its not a real choice is it?
In most games there is a cap on points. So that gives points a value.
Money has no cap so it has little value. If you cap money you can still play,
the game. Thats really what leads to all this crap. Bored players.

Wed, 05/21/2014 - 17:43 | 4782771 Oldwood
Oldwood's picture

There are no equal choices other than a choice is a choice. Married or single? In debt driving a new car or no debt driving the old Dodge. All choices, none "equal". Every day is a choice. We can live or die by our own hand. We generally defer or procrastinate those decisions where the choices are bad and worse, but that does not change the reality. Choices that would appear equal are not really a choice now are they? Choosing between two seemingly identical items leaves us with indifference, like voting left or right...not much of a choice. Our lives are but a series of choices and you can easily follow those choices and see how people end up where they do. Choosing poorly can be hazardous to your well being. There are no real caps but most definitely points and its easy to see who has the most and the least points in this game. There is always a choice and almost always not the choice we would prefer, but even not choosing is a choice called doing nothing.

Try to choose carefully as you may not get a second chance. This is not a video game where you can reboot and start over. Some things are forever.

Wed, 05/21/2014 - 15:41 | 4782314 ghostzapper
ghostzapper's picture

Why the fuck is this Charles Hugh Smith guy so afraid to say he feels taking at least a piece of Bitcoin makes a helluva lot of sense?  I understand why people married to gold bash Bitcoin but I just don't get what he seems so worried about.  He portrays himself as one that is taking a firm stand against the banksters and politicians but he seems afraid to endorse Bitcoin (not that it matters if he does endorse it).

What are your other more appealing options?  Are you going to "make an impact on the political scene"?  That's pretty fucking funny and without term limits who gives a shit about politics.  Load up on gold?  Haven't many of you already been doing that and what are the results?

BTW Bitcoin seems to have popped from that 440ish zone I mentioned right here at ZH a couple weeks ago.  if you look at a long term, logarithmic chart this puppy is sitting on an important, rising trend line and just may be ready to reverse the multi-month downtrend.  if 530 goes with volume 728ish is not that far away in terms of time.  Consolidate there for a handful of weeks and then could be new all time highs.  Nah forget it charts don't mean shit. 

Wed, 05/21/2014 - 16:22 | 4782474 bbq on whitehou...
bbq on whitehouse lawn's picture

And who will own all the bit coins? You cant own all gold, but you can
own all bitcoins.
Its not the answer, never was.
Bitcoins are not things they are tokens of a game without the game.

Wed, 05/21/2014 - 17:35 | 4782749 ghostzapper
ghostzapper's picture

What are the other options if society has a chance to at least pursue a relatively peaceful path forward?  We already have an ongoing war and it's a financial war.  We may not "need" a physical war. 

I know, I know back to the stone age and armageddon and all that.  But perhaps there is a concerted effort underway to provide a parachute for the current system while the world transitions to a new system.  Nations that can't, won't, or have little chance to compete in the stacking contest may very well find Bitcoin to be a very appealing option. 

Wed, 05/21/2014 - 15:54 | 4782348 kevinearick
kevinearick's picture

Kids:  Today, Yesterday and Tomorrow

The problem with kids today is not that they are coddled or raised in poverty. Those are symptoms of civil marriage. The answer to spoiled children with an intact umbilical cord to their mother, who is fed by a government umbilical cord, is not to exploit disconnected children in the field or in the factory, or vice versa. Both exist, are symbiotic, in the same circuit, with the connection hidden by the misdirection of the ivory tower economists, reflecting their own assumptions in the magic of free trade agreements, that opportunity cost cannot be measured, therefore is to be ignored, until it can’t.

Civil marriage systematically denies children an equity position in the economy, replacing the natural feedback loop with an artificial one. An economy that creates debt in their name before they can fathom debt, as slaves of slaves, is far more cruel than direct physical slavery, because it is their own habits that intern them, which is why you see so must self-destructive behavior. Physical bruises heal faster than psychological bruises.

If you look, you will see that all empire participants, including the hedge fund managers, are economic slaves to the debt they are trading between themselves. If that debt as income should stop growing, they would all be immediately impoverished. They are all dependent upon making their own children slaves to a demographic ponzi. And they do it to themselves, seeking something for nothing. That someone like Warren Buffet is efficiently organizing the market is a derivative.

They race around in circles, collecting each other’s byproducts, competing to see who can get the greatest return on the least effort, which is lionized in the media surrounding them. Without your health, you quickly have nothing, most are granted health at birth, which simply needs to be maintained with nutrition and exercise, yet the AMA doctors organizing the breeding result are the landed class with the highest income, producing more destruction every year. They are morons, but who are the morons feeding them?

So, your first order of business as a young person is to maintain sufficient privacy, distance, to ignore the empire morons. Your next order of business is to maintain your own health. And your next order of business is to develop your skills, to compliment the talents you were granted at birth. If you think about it, you are far better off working for a low wage and collecting no debt, in return for the opportunity to develop skill, than you are efficiently collecting debt in a corporation.

That’s what the old-timer, with the assets you need to begin and no one to give them to, because old-timers with assets are always surrounded by parasite salesmen, is looking for. Be the needle. Goldman Sachs and all the others are built on greed, social depravity, family members stealing from family. But, if you are not part of a couple, capable of producing productive children, your outcome is going to be the same as the morons, despite your best intensions.

Nothing has changed about empires. You don’t have to reinvent the wheel. As you can see, the empire ponzi works, until it doesn’t, when the middle class created for the purpose is crushed, from the bottom up. The only improvement made by dc technology is the ability to liquidate individuals in aggregate, to hide the result from other individuals until they are ready to be liquidated.

There is no lack of opportunity, globally. It’s everywhere, in the form of misappropriated assets, as is the kindling you need to start the fire. The problem solution for the majority is that they have embedded fear in their habits, so they cannot see the opportunity. All they see is threats to be mitigated by insurance, debt as income, which is imploding. Placing the derivative before the integral has the same result every time.

Pitching the empire hoard your second derivative is far more effective than defending your integral. Despite all the pieces of the fusion/fission reactor I have placed in over 500 articles, the hoard cannot see it because the participants cannot think for themselves. They can only comply with their peer pressure group, as they were bred to do. I really don’t care what you do with the reactor, and neither do the other old-timers, so long as you do something, anything, productive.

Learn to think with a spouse, chosen for the purpose. Finding a needle in a haystack is simple if you are a needle, but impossible if you hay. Every process has priorities, a budget and a feedback loop. And you have the entire universe at your disposal. Even the most ignorant bear can recognize a human capable of completing the circuit. Ignorance is the enemy, not any of its derivatives. Knowledge is a derivative.

A male telling his daughter over and over again that she not need learn to work because a man is going to provide for her, and then seeking a female to provide for him is not the solution. Neither is a female telling her son that he must provide for her because she has no male. Unless you want to grow empire gravity, issuing debt in the name of the unborn is certainly not the solution, which is why Putin is kicking Obama’s A, the empire kettle calling the empire pot black.

Don’t join the resistance. Leave the morons behind. An autocratic central government does not create effective communities, as all of Asia has proven, repeatedly, for over 5000 years. Only you can build a community, upon which the bank is completely dependent. All a bank can do without community is issue debt as an asset, which is what you awe looking at. Adjust privacy accordingly.

Don’t deny your children equity in work, and expect not to grow the empire, to kill its own. The nation/state is a derivative of public education, not the other way around. Communities do not raise productive children. You do. The cornerstone of community, and everything else in the human economy, is marriage, not a contract for divorce to feed the lawyers and doctors. Empire History is nothing to fear.

The only benefit of being an expert at forming gangs is understanding gangs, which is irrelevant, unless you want to live in the past. Your children do not belong to you or the State. The best you can do is prepare them to seek their own future, and hope they come back for a visit. Without circulation, there is no economy. A tough hide protects a compassionate heart.

When you walk into a system, all you have to see is its demographic imbalance to see what ails it. Expect the empire to lie about its condition. That’s all it can do. It’s always a den of thieves, stealing from themselves.

Your children do not come with instructions for a reason. It is the unknown that makes the system work. The solution to monkeys imitating what they see on TV is not imitating what you see on the Internet. There will always be monkeys wanting to join a parade, always wondering why no amount of crap will satisfy their depravity, with hucksters to feed them more, short term something for nothing in exchange for long term nothing for something.

The growing gap, generation or otherwise, isn’t really a gap, if you understand quantum statistics, time. Don’t let gravity fool you. It’s just a return line, doing no work. Take off the empire glasses issued in school and you will see it for what it is. If you want to proceed to the future, cut your losses and get out of the return line.

Jerry Brown’s hoard watches me all day, every day. So what? Let him cut off production to serve consumption on that SMART train, hoping to come back and vacuum up the green shoots with tax advantaged peace officers hired for the purpose. He’s just doing his job, making make-work. The Cold War is all about blowing up economies, from any distance you like.

Ironic, no, Putin chastising Obama on the principle process of God, family and country?

Wed, 05/21/2014 - 16:29 | 4782499 bbq on whitehou...
bbq on whitehouse lawn's picture

Draw the lines wherever you wish, so long as they can hold. Yes, games do need lines, choices, consquence etc... But they also need players and players need to be on board and willing to accept the lines and other game machanics, for the love
of the game. Choose hookers, blow or your vary own lab to run.

Wed, 05/21/2014 - 17:25 | 4782708 Raging Debate
Raging Debate's picture

Kevin Earick - Don't fear empire huh? Tell that to the 9 million sentenced to the gulags. Or the 20 million killed by Western financed Adolph Hitler. Now that America has been all used up an reserve peg to China it's my turn right? Just ignore it.

Study of robbery be it individual, group or collective is the only reason I still have a business or penny to my name and it was close with that knowledge.

As for marriage. Never again with a state contract. If the girl doesn't like it they can shove off, lota of young ladies happily settling for a daily meal ticket without control of the whole enchilada in these times. I got a vasectomy. No more kids for me I certainly would have to pick a different country to raise them in.

All your other commentary was about adding value. One can't do that when your imprisoned in a gulag or dead. Once the rule of law is dead the criminals do whatever they want to you and if your a shrinking pie of holding anything without a club of attorneys, political contributions and CPA's you know where they are coming first. Let me give you a hint its called low hanging fruit. Only a few apples left on that tree...

Wed, 05/21/2014 - 16:24 | 4782483 Notsobadwlad
Notsobadwlad's picture

It is even more insideous when one considers that since all money is fiat money put into the market at interest, the banks are not taxing all income (as the government is) each and every year, the banks are taxing the working capital base for the entire world ... simply by their existence as monopoly creators and distributors of money. The more moeny they put into the world, the more money they collect every year just by existing. Somebody, somewhere will always owe money to the banks for every (undefaulted debt) penny that hs been put into the market.

Money is only in the market as free money if the loan is defaulted and written off. No wonder they are unwilling to take losses on catastrophically misallocated and bad debt and are instead ever so willing to pile more bad debt on top of bad debt.

Wed, 05/21/2014 - 16:31 | 4782505 garcam123
garcam123's picture

Bla Bla Bla Bla Fucking Bla.......That's all that goes on here.  The endless litney of wailing and teeth knashing of a bunch of "intellectuals" regurgitating all that is known about the "elites" and how we are so fucked.

OK, We got that part.  So what the fuck to do?

Surely there is a mechanism available to the American people to demand a stop in what this government is doing to us and the world?? Isn't there?


Somebody write and article about how to stop these "representatives" of US?


And stop with the endless hand wringing already.  I've only got 1 extra large cryin towell!

Wed, 05/21/2014 - 17:16 | 4782671 withglee
withglee's picture

Recognize money for what it really is and always has been: "a promise to complete a trade".

Recognize any other money not created from a trading promise for what it is and always has been: counterfeit.

Manage accordingly.

Wed, 05/21/2014 - 17:41 | 4782764 messymerry
messymerry's picture

Mao Tse Tung said change will come, change will come through the barrel of a gun.  It is as it's always been...

Alabama 3 says:


Wed, 05/21/2014 - 18:44 | 4782983 Ban KKiller
Ban KKiller's picture

Public Banks. 

Thu, 05/22/2014 - 12:01 | 4785011 goneYonder
goneYonder's picture

The solution is for YOU to undo your shackles, take responsibility in your community and stop looking to others to tell you how things should be. How can we spell this out for you?

The information you seek is out there. Many people are making it available. 

To be free is to set others free. Neither a master nor a slave.

Wed, 05/21/2014 - 17:08 | 4782644 expiredeternity
expiredeternity's picture

You want to end the cycle? Pay off your debts.

There is NOTHING else the average American can do about fiat currencies.

Wed, 05/21/2014 - 17:22 | 4782693 Robot Traders Mom
Robot Traders Mom's picture

What is this "state-issued currency" he speaks of? Constitutionally, this is how it should be, but alas, a private cartel issues the Dollar...


It is hard to take everything else seriously in this article if he is confusing the Constitution with the Fed.

Wed, 05/21/2014 - 17:25 | 4782711 CHX
CHX's picture

It's simple. PMs are for longterm savings, fiat (or bitcoin for those who like it) for transaction. Done.

Wed, 05/21/2014 - 17:27 | 4782717 SharkBit
SharkBit's picture

First step.  Kick the fuckers out.  Wake up people. Tic Tok,Tik Tok.

Wed, 05/21/2014 - 18:20 | 4782895 Oscar Mayer
Oscar Mayer's picture

The guy gets his terms wrong, fiat and credit are two different things.  98% of what people refer to as "fiat" or the "money supply" is credit, which has no legal standing as a currency, only the debts incurred through its use as a currency are legally binding.  So, people are not "fiat slaves", they are "debt slaves", made so by the use of credit and credit is not fiat.

Wed, 05/21/2014 - 18:31 | 4782931 Mad Muppet
Mad Muppet's picture

I own gold mining claims: ten old mines from the 1860s, plus about 3000 ft. of gold bearing creek. Plus the equipment and experience to recover it. Fuck fiat. After the collapse, I'll dig real monies from Mother Earth, like a man is supposed to.

Wed, 05/21/2014 - 21:41 | 4783454 Nimby
Nimby's picture

And what are you going to use to lay claim to "your" mines and "your" creek?  A piece of paper?  I'll see your title and raise you an AR-15.

Wed, 05/21/2014 - 18:54 | 4783017 Duc888
Duc888's picture




Nice to finally see CHS look at the macro picture.  'bout gdamned time.

Wed, 05/21/2014 - 21:33 | 4783426 VWAndy
VWAndy's picture

Picking up steam faster all the time.


Wed, 05/21/2014 - 22:32 | 4783591 AdvancingTime
AdvancingTime's picture

Just over a year ago I stumbled upon a blog on WordPress .com written by Gerry Spence who was born and educated in the small towns of Wyoming where he has practiced law for almost fifty-five years. As a  nationally known figure in the legal system Spence  has spent his lifetime representing and protecting victims of the legal system from what he calls The New Slave Master: big corporations and big government. Below is a disturbing take on society put out there by Gerry Spence and the idea that we have become no more than slaves.

Thu, 05/22/2014 - 00:25 | 4783832 honestann
honestann's picture

It would be nice if the few sane humans on earth could protect themselves from the predators-that-be by never borrowing money, and holding their wealth in real, physical form (gold, silver, platinum, palladium, rhodium and so forth).

While that is a wise (more efficient) way to live, the biggest consequence of fiat impacts everyone who interacts with other humans, even if they avoid debt and fiat entirely.  Why?  Because the easy availability of debt and fiat, plus the widespread acceptance of debt and fiat massively increase the prices of all products.  No longer do most individuals ask themselves, "Do I have enough to buy this, and can I afford it", they ask themselves, "Do I have enough to make the down payment, and/or does this purchase exceed my credit limit".

Since the creators-of-money-out-of-thin-air benefit from "maximum slavery", and compete with each other to lend the literally infinite pool of fiat to the limited pool of borrowers, the natural incentive is to shove as much fiat and debt into everyone as possible.

Because buying decisions are made on the basis of "Can I make the down payment" or "Will this purchase exceed the credit limit of all my sources of credit"... buyers are not price conscious, and so prices rise higher... much, much higher.  The other way to say this is, "An infinite supply of fiat chasing a fixed supply of real goods".

So, even those individuals who only convert their gold or silver to fiat long enough to make purchases... still end up paying 2x, 3x, 5x, 10x higher prices than would otherwise exist.  And so, sadly, even the most prudent individual is screwed when fiat debt dominates a nation (or planet).  True, individuals who avoid debt and fiat are still better off, but not as much as we should be or could be in a fiat-free, debt-free world.

Thu, 05/22/2014 - 00:25 | 4783833 damicol
damicol's picture

I have never been able to understand why people running SMEs or self employed pay taxes.

I haven't paid income taxes of any form since the late 70's.

Its not difficult. it just takes understanding of how to do it.

So here it is again. Simple step by step instructions.

First contact  an attorney. Overseas of course.

I use Ocampo Manalo One of the best. Contact Ms Lim

For a one million peso capitalization, paid up is 1/16th or about $1400.

They will form a full off shore 100 %  Philippine jurisdiction Philippine based corporation  with full memorandum and articles of association covering outsourcing and all other things you need.

You will own over 98 % of the shares and have full and total control of the company.

Ask Atty to put you in contact with the local company that can manage all the structure and directors and provide accommodation addresses you need . UK ASIA

They will help set up the contracts between you and your US company and the new Philippine based company.

Now export your profits, and even your losses.

Never pay taxes again.

They will even arrange a three way skype conference call with you so you can ask any questions you need to ask.

For more  if you want to contact by email



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