Michael Krieger On The Rebirth Of Barter

Tyler Durden's picture

Via Michael Krieger of 'A Lightning War For Liberty' blog,

Justice in the hands of the powerful is merely a governing system like any other. Why call it justice? Let us rather call it injustice, but of a sly effective order, based entirely on cruel knowledge of the resistance of the weak, their capacity for pain, humiliation and misery.
- Georges Bernanos
(1888-1948)

 

Outwardly we have a Constitutional government. We have operating within our government and political system, another body representing another form of government, a bureaucratic elite which believes our Constitution is outmoded.
- Senator William Jenner
(1908-1985) U.S. Senator (IN-R)

 

The Final Act of the Uruguay Round, marking the conclusion of the most ambitious trade negotiation of our century, will give birth – in Morocco – to the World Trade Organization, the third pillar of the New World Order, along with the United Nations and the International Monetary Fund.
- Government of Morocco
April, 1994   Source: New York Times, full page ad by the government of Morocco

 

The Rebirth of Barter
One of the most important articles I have read this week comes from Forbes contributor Gordon Chang.  In it he states that China is preparing to avoid U.S. sanctions on Iran by paying for oil with gold.  Not only that but he also mentions that China has already been bartering with Iran to get a hold of petroleum.  He states:

So how can Beijing keep both Iran’s ayatollahs and President Obama happy at the same time?  Simple, the Chinese can avoid the U.S. sanctions through barter.  China has already been trading its produce for Iran’s petroleum, but there is only so much gai lan and bok choy the Iranians can eat.  That’s why Iran is also accepting, among other goods, Chinese washing machines, refrigerators, toys, clothes, cosmetics, and toiletries.

 

The barter trade works, but Iran needs cash too.  As it is being cut off from the global financial system, the next best thing is gold.  So we should not be surprised that in late February the Iranian central bank said it would accept that metal as payment for oil.   Last year, China imported $21.7 billion in Iranian oil and exported $14.8 billion in goods and services.  As the NDAA goes into effect, look for Beijing to ship gold to Iran to make up the difference.

Thus, the leadership in America in its infinite stupidity has actually accelerated the demise of the U.S. dollar as the world’s reserve currency.  After its “kinetic action” in Libya succeeded in toppling the regime there, Washington’s geopolitical hubris grew and it has attempted to muscle Iran into a corner.  Instead, all it has done is alienated our “allies” that need Iranian oil to survive and in the process quickened a move away from the dollar to settle certain transactions.  Read Gordon’s article here.

In a similar move on a more micro level, the government of Spain in a similar desperation has banned the use of cash transactions above 2,500 euros (read this great article here on it).  How do you think citizens are going to respond to this?  People are already in the streets.  They are not pleased with what is going on.  Then the government is going to tell them they can’t use cash amongst themselves so that the authorities can track every single thing they do and bleed them with taxes until they are slaves on a banker plantation.  Everything is going to go black market and to a barter system.  It will happen country by country as governments get increasingly desperate and the authoritarian clamp down continues.  It will happen on an increasing level until all of these house of cards bureaucratic states fail and something new is reborn.  In case you haven’t seen it yet, this one town in Greece is already leading the way. This story outlines what will be a mega trend globally over the next decade.

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DaveyJones's picture

"Hillary is the only neocon in the mix at the moment"

and the most dangerous

Cathartes Aura's picture

*nods*

hell hath no fury like a woman scorned.

but in truth, she's been a patient player for decades now, moving the chess pieces carefully, including the big dumb ego of her husband, creeping stealthily towards Power. . .

she's learned well from all her mentors, and is passing on the knowledge to her daughter. . . who married Orthodox, mmHmm. . .

Hangfire's picture

Not sure what the 3.8 million man army is going to do against cruise missiles, maybe shoot their AK's straight up and cross their fingers.  Still not getting the invasion part of this whole thing.   

sun tzu's picture

A cruise missile can't invade and occupy a country and secure its oilfields

AnAnonymous's picture

What, China ships its gold to Iran, so that the US can later invaid and take it along with the oil?
___________________________________________

Well spotted. Funny tought indeed.

And China is not alone in the boat. Others might be led to exchange their gold for Iranian oil.

US citizens might also conclude that Iran had called it on them by loading up on gold like that.

AnAnomalous's picture

 

And China is not alone in the boat. Others might be led to exchange their gold for Iranian oil.

Astuteness is your hallmark, Chinese comrade of mine!

As all know, China is not alone in boat, for surely --- but soon, China will in control boat, not letting others dictate to great Chinese state and Communist Party who is to not allowing resources to flow to natural home.

Great China shall rule over all!

 

 

VonManstein's picture

dont see DXY touching 81 next week

rotagen's picture

Starbucks is the epitome of stupid, strip mall cattle-brained americanism.  And they're a zionist israeli company to boot. They'll never get a penny of my money.

The Alarmist's picture

So it was you whose debit card was rejected!

SilverDoctors's picture

Barter is popping up all over Europe.  Won't be long before we see the same here in the US. 
Looks like Blythe Masters is preparing to barter with her clients' silver....JP Morgan just adjusted their entire customer silver book into dealer holdings yesterday....5 million ounces in a single pop!

http://www.silverdoctors.com/jp-morgan-increases-registered-silver-inven...

The Big Ching-aso's picture

 

 

I once tried bartering for sex but she told me I came up short of her asking price.

Big Slick's picture

"I once tried bartering for sex but she told me I came up short"  Does that make you Not So Big Ching-aso?

ihedgemyhedges's picture

How long u been married?????????????????????????

The Big Ching-aso's picture

 

 

Marriage has been great for my sex life.   When it happens on that one special day of the year.

Jorgen's picture

Barter is not such an old idea after all. It was an essential part of Soviet Bloc's Comecon (Council for Mutual Economic Assistance).

CH1's picture

But people in government may believe....

I guess I'll just say it: Who the fuck cares what they believe?

 

NotApplicable's picture

Well, it matters if they have guns, or some other form of force to wield over you. But I get what you're saying.

Fuck 'em, and their law!

Red Heeler's picture

There will be two economies: the official system and the barter system. Everyone will participate in both - the official system to maintain the appearance of legitimacy and the barter system to conduct as much daily business as is practicable.

lakecity55's picture

All the underdogs-- independent sob's, christians, free-booters, non-muslims, patriots will be operating the black market.

They will not take the mark.

i-dog's picture

That sounds exactly like my two sets of books.

i-dog's picture

Only two that the accountant knows about....

krispkritter's picture

The IRS has already put forth the tax on barter rules and if you think that when they are desperate enough for money that they won't crack down on all forms of exchanges(ie. flea markets, Craigslist, etc.)?

http://www.irs.gov/businesses/small/article/0,,id=187920,00.html

Get real people. .Gov wants a cut...

Abolish the IRS. Move to a Fairtax or whatever can replace it except this monstrous over-reach of TPTB into your pocket. There is no 'free market' and hasn't been for longer than anyone here has been alive...

krispkritter's picture

The Irrational Revenue Seekers? B-b-b-but you blaspheme! /sarc

Yes_Questions's picture

 

 

Indomitable Ravenous Succubi

Intermittent Revenue Suckers

Inevitably Remitted Stash

I Really Steal

 

Think for yourself's picture

Inane Rapacious Scum 

Illegitimate Ransom Squad

 

Max Hunter's picture

LMAO.. one person went through and voted down on all the IRS negative comments.. ohh how funny.. Have a fan do we??

icanhasbailout's picture

The problem for the IRS and the government in general is that once the numbers are low enough, enforcement becomes a money-losing proposition and works against the interest of even the most tax-craven bureaucrat. I don't see how they can, with their customary efficiency and financial managment, prosecute anything below a half-million and still profit. Their best bet is straight intimidation which is low overhead and captures all the easy marks.

MeelionDollerBogus's picture

IRS can kiss my ass.

Cash value for barter "FAIR MARKET VALUE" can't exist.

if it has a cash value there was no barter. The very NOTION of cash value is an evaluation of involved cash exchanges for something that's not cash. By definition barter breaks that.

The IRS isn't even legal as far as I'm concerned.

DaveyJones's picture

labor swapping can be outside the rules

ZeroPoint's picture

It won't be so easy. How do you tax a man who trades a pair of work boots for 10 pounds of potatoes?

 

sethstorm's picture

The government would just tax both for the higher sum of the two as valued in taxable USD.  In this case, the commodity price for potatoes versus the replacement cost would be compared, and thus a figure given to tax. 

Do not underestimate the US government when it comes to doing the impossible.

franzpick's picture

And here is a recent example of the draconian, swift and vicious moves that any government will make when its people, suffering 18% inflation, attempt to dump the currency by pricing things in gold (houses for one):

http://therealasset.co.uk/vietnamese-gold/

Gene Parmesan's picture

Cash will be outlawed before long at this rate.

cougar_w's picture

Rate has nothing to do with it. Outlawing cash (that is forcing debit card and CC use) will become the norm under a police state. In fact that would be one of the early signs. Call it the mark of Cain if you want.

People that comment here seem to think the government will be setting up FEMA camps in secrecy and then forcing everyone out of their homes in the middle of the night. No no my comrades! It will be nothing so obvious as that. First they'll damage our ability to function outside their control, in all the ways they can, including purchasing basic necessities. Then they'll cook up all sorts of "reasons" why cash is illegal, and why food is scarce, and why you cannot have a garden, and why the water in your town is unfit to drink. Taking away our ability to manage in the world. And through this they will slowly break our minds, or break enough of us. And the "broken" ones will then seek shelter from the "broken" world (which really isn't) and ask for camps to be created as a humanitarian act, where the food will be had and the water will be drinkable.

And the broken ones will go into the camps with a light heart, grateful, and singing hymns.

We all get the idea, right? Can't you see it? I sure can.

There are monsters. You need to know the nature of humans to see them. But there are monsters.

 

lakecity55's picture

Absolutely. At each stage of the game, when the Nazis ran a false flag, The People demanded action. Hitler responded by taking away more freedoms. When they complained, he simply said "You asked me to fix it."

In the New Age of serfdom, you will ask for your chains.

francis_sawyer's picture

First they'd have to "kill" the internet... Otherwise there'd still be too many UN-SHEEPLE who wouldn't play along...

rgbensonaz's picture

They don't have to kill it...rather they will simply censor it.

Freddie's picture

Americans gave up liberty for a clicker and HD TV.   Each tim ethey turn on the TV they submit to their overlords and enpower them.  Serfs.

AldousHuxley's picture

they don't have censorhip in America.

They have trashorship.....they put out so many trash media  and advertisement out there that people end up watching stupid youtube movies instead of anythign significant that will impact their decision making.

 

No need to censor article on political corruption when dumbasses are busy watching sports or dacing with the stars. Focus is on the celebrities not the real man in power.

Think for yourself's picture

Yep. Just drop the signal to noise ratio below the level of most people's sensibility to it. They'll get lost and confused, and start adding more noise themselves.
The wisdom of the age of information lies in filtering it out to find the golden nuggets. But self-reinforcing communities do form around this goal (ZH as the obvious example here, although the same exists for many different interests) and this threatens the system, as truth tends to prevail. This is why I believe they'll be forced to censor as well.
I've said it before, I'll say it again: dialectics is the sharpening stone of the mind. 

krispkritter's picture

They won't kill it. They'll just monitor any financial transaction online via Paypal, your bank, Amazon, Ebay, etc. and hit you with a tax and penalty if you don't file on it. They already do it via Paypal over certain amounts per year. Amazon too. They are not going to leave any stone unturned for your transactions. And see the barter link above. You think they are going to overlook your income via a 'free' site like Craigslist? You think you can sell at a farmer's market and use an iPhone for non-cash transactions(Paypal, SquareUp, etc.)? Not likely for long. Where there's a 'bill', there's a 'pay'. 

TBT or not TBT's picture

Oof!   Amazon and Paypal ALREADY report our transactions to the tax collectors?   Got a link where we can go read about that?

I know some states want to enforce some sort of "Amazon tax" for example, and would need an enforcement mechanism.