So you want a revolution?

The word revolution means “turning around,” meaning a rapid transformation. The most famous revolutions arguably are the American Revolution (1775–1783), the French Revolution (1789-1799) and the Russian Revolution of 1917.

All these revolutions saw a change of power from the hideous monarchy system to the public. Even the English Revolution (1642–1651) – better known as the English Civil War – put power where it belonged… albeit only briefly (the monarchy was re-instituted in 1660).

There have been hundreds of revolutions throughout the centuries. But not all revolutions were successful. The revolutions of 1830 and 1848 in Europe failed to establish democracy.

Not all revolutions are about oppression or tainted with war. Think the Industrial Revolution of the 18th century, the Second Industrial Revolution (1850 – 1914), the Sexual Revolution (1960s), the Digital Revolution (1980 onward) leading to the Age of Information. These were revolutions inspired by the great inventors and thinkers of their time.

Political and social revolutions (often a continuing appeal to nationalism), however, seem to trail greed, which itself often precedes war. In the first recorded revolution in history, at around 2800 BC, people from the Sumerian city of Lagash overthrew bureaucrats who were lining their own pockets but kept raising taxes. It seems as if not much has changed! Same sins, just different faces.

REVOLUTION lyrics by the Beatles:

You say you want a revolution
Well, you know
We all want to change the world
You tell me that it’s evolution
Well, you know
We all want to change the world
But when you talk about destruction
Don’t you know that you can count me out
Don’t you know it’s gonna be all right
all right, all right

You say you got a real solution
Well, you know
We’d all love to see the plan
You ask me for a contribution
Well, you know
We’re doing what we can
But when you want money
for people with minds that hate
All I can tell is brother you have to wait
Don’t you know it’s gonna be all right
all right, all right

See: So you want a revolution?

Quantitative easing explained easily

Quantitative easing (QE) is a simple electronic method by which a government or central bank “prints more money” to support private banks. In short, another bank bailout.

The money is not actually physically printed at a mint or based on the value of gold or anything else; it is, believe it or not, created out of thin air and the value of it is established in a form of promissory notes, or bonds, which are available only through the banks who have, of course, received the quantitative easing.

The basic concept of quantitative easing is to increase the excess reserves of private banks. There is no other benefit to quantitative easing.

Keep in mind, at this time, that private banks in the West (U.S. and Europe) can borrow public money at 0% (zero percent) or close to it and lend it back (maybe) to the public at around 5% interest and up to 30% in some instances through credit multipliers. Thus private banks get money for nothing (no interest) AND get quantitative easing (which cost nothing to create) AND their success is guaranteed by the public, the latter known as public debt.

In simple terms

Imagine this: your acquaintance logs into his internet banking account, he wants more money, he changes his bank balance himself (something which you can’t do with your bank account). He transfers you an amount but asks for it back immediately. If you can not give him “his money” he sues the crap out of you and, God forbid, start foreclosure on your house. There, your acquaintance is a quantitative easer.

Quantitative easing debate

The practice of quantitative easing has raised a lot of debate – and not without reason. To date, quantitative easing has not stimulated any economy anywhere at any time in history, yet. It did, however, add significantly to bank profits. The Rolling Stone’s Matt Taibbi calls quantitative easing “The Hidden Government Subsidy for Banks.” Ellen Brown points out that “adding more reserves to a banking system that already has more reserves than it can use has no net effect on the money supply.” Robert Skidelsky says that “what matters is not printing money, but spending it.” David DeGraw feels that quantitative easing violates the rule of law.

As with all debates there are, obviously, two sides to the story. Quantitative easing does have support from some economists. But in general the public – the people who guarantee these funds – feel that the trillions of bailout dollars could be better spent elsewhere. And since you are the guarantor you surely should know what a trillion dollars look like. (Hint: just one trillion dollars in $1000 bills is 65 miles high, ala USA Watchdog. The bailouts total many trillions of dollars – nobody actually knows the precise amount.)

Quantitative easing explained easily

Still unsure how quantitative easing works? The BBC explains how money is created out of nothing and NPR says nobody really knows if this works. Wikipedia has some history of quantitative easing. But the most fun explanation of quantitative easing is by video:

See: Quantitative easing explained easily