Howard Switzer
5 min readAug 29, 2024

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I sure hope so but it will require as Sun Tzu said, "know your enemy." That is a problem since most people don't understand what capitalism really is.

Capitalism began as a French word, capitalisme, but was used initially to refer the system of war finance, or the practice of borrowing large amounts of money to fund the costs of war." War debt was in fact how the capitalists got nations to hand over their monetary authority to the banking system which they dominate. So, capitalism dominates the ownership of the raw materials, the means of production, exploits earth's resources and labor, concentrates wealth, creates poverty, drives destructive growth, predatory competition and all wars are banker’s wars. That is what capitalism does …but what IS capitalism?

What does the word literally mean?

Capitalism = (capital = money) + (ism = system) = money system. The central feature and source of awesome power for capitalism is the debt based private global monetary system they own and operate through the global banking system. Capitalism is often wrongly conflated with “free enterprise” and “free markets” but capitalism assures that these are NOT free. This is because Capitalism is a debt parasite on the back of free enterprise making every household, business and government in this world in debt and dependent on the banking system. There is far more debt than there is money. Global debt is about $315T while the entire global money supply is only $85T, total debt in the US, public and private, is about $95.3T with a money supply of only $20.9T. The fact that our money is allowed to be a store a value allows the massive accumulation of it to be used for power.

“The rich rule over the poor, and the borrower is slave of the lender.” Prov 22:7

How the system works:

The big commercial banks control the creation and allocation of all the money in the global banking system as interest bearing debt, as loans consisting of the principal created as a deposit and the interest is added to the debt. As the principal is paid off, that money is extinguished while the interest, which must come from the principal of another loan, goes to profit the bank owners and into asset pools owned by the wealthy. This is the economic growth imperative as society competes to pay the interest on the debt and not lose their collateral. However, when loan payments (money destroyed) exceeds loans being made (money created) the system crashes into recession or depression for lack of money and loans default. This has been called "the business cycle" but is more a monetary/finance system cycle. This then allows a transfer of wealth as the real wealth collateral from the loan defaults is picked up for pennies on the dollar, further concentrating wealth to the top which is then used for more power and control.

Money Power

Money Power is the term Martin Van Beuren used when referring to the big bankers. Jackson had famously refused to recharter the privately owned national bank which plunged the nation into a deep depression because he and Martin failed to issue US money for the economy to keep going. The Money Power knows how the wage monetary war. Money and power are two sides of the same coin. Because all the money is created as interest-bearing debt, interest costs are buried into the prices of all the goods and services we buy. Beginning with the supply of raw materials, processing, shipping, wholesaling, and retailing etc. all required borrowed money. On average 50% of the price we pay for goods and services are due to “capital costs”, interest being paid to the banks.

As former World Health Organization director Margaret Chan explained, "most of the organization’s funding comes from private donors and that they decide what that funding is to be spent on." In other words, only money talks, those who fund the WHO tell it what to do. This is true not only of the WHO but of nearly every public and private institution in the world including governments, as the 2014 Princeton study on political influence by Gilens and Page indicated. Lord Acton pointed out well over 100 years ago that, “power corrupts.” The “power” he was referring to was money. He continued that “absolute power corrupts absolutely.” Here he was referring to the power to create money, which is a public power that the commercial banks of the finance industry usurped from our government through legislative sleight of hand in 1913. They have steadily increased their power and control ever since. As Lord Acton said, “The issue which has swept down the centuries and which will have to be fought sooner or later is the people versus the banks. “

Because all money is created as debt, the debt is unpayable and continues to grow. Debt is a form of slavery, and the world is facing a massive debt owed to these few powerful players. While our federal debt is just $34.5 trillion, including the private sector puts the nation’s debt at $97 trillion and growing fast. This while there is only $20 trillion in the nation’s money supply. However, it is a global system, and the global debt is now blowing past $313 trillion while there is only $85 trillion in the entire world money supply. Too much money? Not in this system. The big bamboozle is that all the money is issued as interest-bearing debt when Government was given the power to create money in the Constitution, Article 1, Section 8 clause 5.

Changing the System

The 2011 NEED Act is a Constitutionally and historically aligned proposal of three reforms to be implemented together.

• Require Congress to be the sole creator of all U.S. money debt-free;

• End the privilege of commercial banks to create money.

• Transfer all remaining operations of the Fed to the U.S. Treasury.

This would empower Congress to fulfill its Constitutional mandate as articulated in the first sentence of the Preamble and fully fund the common needs of the American people. Because the dollar plays such a key role in the world economy this change would allow other nations to follow suit. Issuing money is the most vital prerogative of democratic self-governance, money is the governing factor, and this would allow nations to reclaim their natural resources for the benefit of their people instead of massively enriching only a few billionaires. Because our proposal is based on historical monetary successes, we know how it will affect the economy.

Debt, so prevalent now, will begin to disappear and interest rates will go down as banks, no longer able to create money, compete for deposits. Prices will go down as well because they will no longer contain the 50% on average interest charges. Public policy will be reconnected to the politics so that representatives will be more accountable and able to fully fund public healthcare, education, and state of the art infrastructure. New investment in communities that have long been neglected will revitalize them and eliminate poverty. Large corporations will begin to shrink as the large infusions of credit they depend on is no longer available and they begin to sell off their production assets. Land reform will come to the fore as the nation, recognizing the basis of an economy, seeks to revitalize its agriculture with parity pricing to make small holding farming profitable again.

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Howard Switzer

Howard Switzer is an ecological architect and monetary reformer in rural Tennessee.