Saturday, November 10, 2007

The Economics of Revolution - Part I

The current political system is robust because of it's strong economic model, so the old axiom, "the larger they are, the harder they fall" comes to mind. So what is the best way to bring down capitalism, and re-institute a more socialist, communitarian model? To do this, we need to look at economics and currency under the current model.

Money is an aid for barter, and in reality a piece of paper where two people have agreed upon the value for trade (that is the purchase of goods or services). Money is a valuable resource only because it is used by the state to pay taxes and fines, it is a commodity that is forced onto the community.

So, let us assume that we live in a tribe and rare shells are used as currency. Suppose that only one person in the tribe knows where the shells are found. This person then has a monopoly on the economy. They are able to trade more than their share, by injecting more currency into the economy, which long term makes the shells worth less. (that is, you need more and more shells to trade for the same amount of goods). So this one individual becomes quite wealthy at the expense of the other tribesman.

While a simple example, this effectively describes the function of the Reserve Bank. The Reserve Bank is a privately owned company with a monopoly on the production of local currency, effectively, making your dollar worth less and less. It is assumed by most people that the Australian Government produces Australian currency. This is untrue. The Australian Government has debts owed to the Reserve Bank who produce the currency, and it is our taxes that pay the loan.

As anarchists, there are a few options for us.

Firstly, lets look at radical change. If everyone in the country withdrew all their currency at one time, the economy would collapse. The fractional lending system is based on the fact that 10X more money is loaned out than what the banks actually have. If everyone went at one time to collect their money from the banks, bankrupcy would ensue. The economy would collapse, however, this would only be a temporary measure. Due to the global nature of the economy now, we would find that within 24 hours, the economy would be running again thanks to injections of "liquidity" from overseas. (This just means some rich arsehole realises his system is about to collapse, so he puts his own money into the system to keep it running). Hence, for a radical change, we need a mass critical number to withdraw their funds globally.

However, I have some grave concerns over the plans of our global NWO. If capitalism failed and all currencies became de-valued, money would become concentrated in the hands of a few. As people sell off their assets and liquidate into cash assets, things like houses and businesses are sold for pennies on the dollar. (The great depression of 1929), resulting in people with vast wealth increasing their wealth. So while for you and me the economy is bad, inflation is high, food is scarce, the very wealthy become exceedingly wealthly.

The trick is once the economy falls, not to re-instate their (statist) currency.

I believe the follow on effect from a global economic collapse will be the establishment of a global currency. A currency that is able to handle the ebs and flows of local market fluctations due to civil war or the like. At this point, we need to limit the use of the new currency to prevent it's uptake. Again, this is difficult when taxes and fines are used to pay the state.

So then, what is the best method to subvert the capitalist system?

The best thing you can do, is to start networking with people. They don't have to be anarchists, they just need to be able to offer you something.

Try instituting a barter system, or trading your skills. Anything that doesn't reqiure the exchange of state supplied cash, which is also referred to as "underground currency".

Underground currency systems already exist, like the exchange of alcohol or cigarettes in prison. We need to start implementing systems outside the current socio-political model, to start building our own de-centralised communities. This serves two functions, the first; with a mass critical number you can cause the economy to collapse (which is less likely), but the second, is to have in place our own economic system for when the currrent system does collapse. What we need to do is start building social infrastructure, which places more than a dollar value on our relationships with the economy.
coming soon... part II - Practical Revolutionary Economics

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