Tag Archive | fiat currency

Paranoid Utopia: The Nightmare World That Thrive Would Give Us.

The makers and fans of Thrive are fond of stressing that they want a better world. Their ideas for creating a better world involve, first and foremost, ending the conspiracies that they insist are screwing up the planet, and second, implementing far right-wing libertarian political and economic ideology on a broad scale. As I wrote in a blog a few months ago about how the world of conspiracy theories is changing, Thrive represents a progression along the road of using conspiracy theories to sell a particular ideology. Zeitgeist: The Movie pioneered this idea, but Thrive has taken it a step farther. Thrive is aimed at a new generation of conspiracy theorists who aren’t satisfied merely to spread their erroneous versions of what they think the facts are, but to remake the world in an image more to their liking.

The problem, of course, is that the conspiracy theories are false, and their adherents’ ideas for changing the world are based on an incorrect and often downright delusional view of reality. That means that their solutions will have very severe unintended consequences, because their solutions aren’t aimed at solving real problems in the real world, but rather solving fake problems that exist only in their fantasy world. This blog will explore what sort of world we might end up with if these people had their way.

This vision is, by definition, speculative. But then again, so is George Orwell’s 1984, a book that many conspiracy theorists cite as prescient gospel truth, and which many believe is literally coming to pass now (or already has).

This article is not a prediction of what I think will come to pass, just as Orwell’s wasn’t either. This article is a profile of what may come to pass if conspiracy theorists of the sort who support Thrive had free reign to build the world that they say they want.

Setting the Scene: After the Next American Revolution.

Conspiracy theorists sometimes try to warn me about what’s going to happen to me in the future. They like to say things like I’m a “traitor” and a “collaborator,” and that I’ll get some kind of just deserts at some point in the future. This reasoning, which is (like most things conspiracy theorists believe in) not fully thought out, assumes that there will be some sort of “revolution” where presumably the current political order will be undone, the conspiracies that these people believe in will be halted, and those who supported them will be punished.

Thrive does not explicitly speak of such a revolution, but it’s clear that its adherents implicitly look forward to one. Foster Gamble talks about “obsoleting” the Global Domination Agenda. He is unwilling to be more specific than this, but it’s clear that he has in mind some sort of radical inversion of the current status quo. That is one way to describe a revolution.

This is a vision of the United States that exists approximately 50 years after a revolution, spearheaded by political and economic thinkers who believe (like the makers of Thrive do) in the most dominant conspiracy theories of today’s world, has swept away the old political and economic order. Whether that revolution is achieved by peaceful or institutional means, or (probably more likely) by violence, is not relevant. This article also presupposes that the conspiracy thinkers who take power believe in the same sort of far right-wing libertarian ideology that the makers of Thrive advance. This is not too farfetched. Libertarian ideology is becoming increasingly identified with conspiracy theories and conspiratorial belief systems—witness the high levels of support Ron Paul has received from people who believe in conspiracy theories. (Foster Gamble supports Ron Paul for President).

In this article I’ve included a section that demonstrates not only Thrive’s ideology, but also that proposed by followers of the Zeitgeist Movement, who similarly believe in conspiracy theories and have used them to advance an ideological plan for the future. Zeitgeist: The Movie was a key progenitor of Thrive, and many of its followers have shared the same goals, tactics and mindset, so it’s appropriate to treat them together.

Without further ado, let us travel ahead in time to the world conspiracy believers have built.

The Money System: No Fed, No Fiat, No Funding.

Just as in our world today, the key factor in the America that conspiracy theorists have built is money. The problem, however, is that there isn’t any. In a post-conspiracy America, there are no banks or formal financial institutions. In the past 50 years, conspiracy theories regarding banks, finance and currency—infused with libertarian propaganda—became so prevalent that the banks either collapsed, were outlawed, or were driven out of business. Needless to say the U.S. Federal Reserve was the first to go. “Fiat currency” is the ultimate evil, the tool of the Illuminati for world domination, so the very appearance of it is social taboo. Just as libertarians and conspiracy theorists today demand, the U.S. is back on the gold standard: all currency is backed by gold. However, early in the revolution, large corporations quickly purchased all of the gold bullion in the United States from the failing banks. All of this gold is still held in their vaults, heavily guarded. It never enters circulation. Gold and gold-backed currency are still traded by the large corporations, but in purely theoretical transactions that take place on balance sheets and in computer programs.

As a result of this situation, there is no currency in circulation. The U.S. Treasury stopped printing money decades ago. In fact, due to massive de-funding of government, the U.S. Treasury no longer exists. No one has seen a piece of paper currency or coin except in a museum.

But because the amount of gold bullion in the United States is only a tiny fraction of the amount of money needed to keep the economy moving, and because the gold reserves are under effective control of private corporations, America has become a land of barter economies. Corporations who wish to do business with each other trade favors, contractual obligations and customers; this form of barter has been unofficially institutionalized in the form of “credits,” which are not backed by any precious metals. Ironically, credits exactly mimic most of the features of “fiat currency” that has been supposedly outlawed and socially stigmatized. In rural areas, as we will see, the chief form of currency is ammunition. Needless to say, the ideals of a conspiracist economy and the realities do not match up.

The Cities: Corporate Feudalism.

The supplanting of democracy by conspiracist thinking and libertarian ideology had the effect, during the revolution, of dismantling government at all levels. Because there is no effective law and the economy collapsed, the result was large-scale anarchy. Major cities are the only islands of calm in a sea of violence and lawlessness.

These major cities are all run by an interlocking coalition of corporations—the same ones that control all the gold and all the wealth in American society. The major function of these corporations is to sell social services to city residents, and they are all monopolies. The Law Enforcement Corporation sells physical security. The Habitation Corporation sells housing. The Food Corporation sells food. The Justice Corporation sells access to the wholly-privatized court system. There is no economic competition. There is also no regulation. Prices are fixed, but in this environment prices don’t matter, as we’ll see.

The cities are walled enclaves, heavily guarded by military personnel, where residents have at least a chance at a life above the anarchy and poverty of the outside world—but at a huge cost. The price for a house alone in one of the cities is far beyond the amount of gold, credits or barter that any ordinary person could ever possess in a lifetime. Nevertheless, the corporations waive their prices and admit new residents in exchange for lifetime commitments to work for them—commitments secured by immense debt loads. This form of indentured servitude is essentially feudalism: the workers cannot quit, cannot lobby, cannot organize, and can be fired and expelled from the city for any reason or no reason. Social mobility is unknown. It is impossible for a common worker—one who cleans the streets, works in the restaurants, drives the bus, provides childcare, etc.—to rise above his or her station; the debt load that the common person has taken on in exchange for living in the city is insurmountable in a dozen lifetimes. In fact, the corporations have begun to tack the balance of peoples’ unpaid debts on to the debts of their children in exchange for agreeing to let their children continue to live in the city after they reach the age of majority. In this way, the corporations acquire an underclass of hereditary serfs, bound to the land and the lord, just like medieval feudalism. These serf-like customers are often traded between corporations as a form of barter.

The corporations have no incentive to treat the workers well. So many more people want to get into the cities than the number of slots available. Consequently the labor supply is cheap and inexhaustible, so any concessions to workers are an unnecessary drain on efficiency. Workers toil 14 hours a day, seven days a week. If they get sick, they are fired and sent out of the city. The workforce is all-white. African-Americans, Asians, Native Americans and especially Jews are forbidden from even entering one of the cities. Because there is no government left to enforce anti-discrimination laws and the Law Enforcement Corporation has a corporate policy to ignore them, even egregious discrimination goes completely unpunished.

Although they live better than anyone else in the society, the directors and managers of the corporations don’t live without fear. The influence of conspiracist thinking at all levels of society makes a stable existence very precarious. All it takes is one errant accusation that a person is working for the Illuminati, or even sympathizes with the Illuminati, and the person will be ostracized from society, fired from his job and quite possibly expelled from the city itself. Evidence is irrelevant, and legal process is unnecessary; an accusation, even an implausible one, is tantamount to guilt. Savvy businessmen routinely accuse their rivals of being Illuminati agents. Promotion and demotion within corporations is due far less often to merit and hard work than it is personnel shifts as a result of firings and expulsions from the city, most of them reactions to conspiracy allegations. Consequently, the corporations are poorly-run, grotesquely wasteful and rife with incompetence. Because they have a captive base of indentured customers, however, and competence and efficiency have no economic value, the ineptitude of the corporate managers has no effect on profits.

Because the corporate management class clearly understands that their power and influence is based on the conspiracist order, they have a vested interest in perpetuating belief in conspiracy theories. In addition to the “legitimate” corporations ruling the cities, there is also a shadowy Conspiracy Corporation. The service this corporation provides is to stage violent incidents, plant fake evidence and deliberately sow distrust and fear among the cities’ populations. The Conspiracy Corporation’s customers are the other corporations who run the city, and who pay it to create havoc as a means of controlling the customer-serfs through fear. Every few weeks the Conspiracy Corporation instigates a random shooting or other act of violence in a public place, which is heavily publicized and blamed on the Illuminati. This fiction maintains the public’s belief that the Illuminati exists and is actively seeking to undermine society. Ironically, in a society built on reaction to nonexistent conspiracies like the Illuminati or New World Order, something very close to what the Illuminati was imagined to be has come into actual existence—thus turning conspiracy theorist beliefs into a self-perpetuating cycle.

The Countryside: Mad Max With Pogroms.

If life is bad in the cities, it’s even worse in the countryside. Government—feared and vilified by conspiracy theorists as the root of all evil—simply does not exist, although the laws, including the U.S. Constitution, are still technically on the books. Outside the cities, there are no police, no local or state officials, and no organization of any kind. There are no courts. There are no hospitals. There are no schools. Roads crumbled into dust decades ago because no one was around to maintain them. No one provides any private social services. For one thing, the big corporations have nothing to gain by selling their services outside the city; the rural population has no money to pay for them anyway. For another, they don’t need the business; they’ve got more customers than they can serve within the walls of the cities. Outside those walls, people manage to survive—barely—by tilling their own tiny farms at a subsistence level.

The level of violence in the countryside is shocking. During the revolution, the only personal liberty that was even remotely respected was the right to bear arms, and out in the country you can’t survive without heavy firepower. Family farms are defended by minefields, barbed-wire fences and kids toting automatic weapons. In many areas, warlords have managed to take over the more productive farms, resulting in irregular patchworks of fiefdoms that are constantly fighting with each other. In addition to outright barter, ammunition is the chief de facto currency in these areas. Heavy weaponry looted from abandoned U.S. military bases is the chief source of power. Life in this libertarian paradise is, in the famous words of Thomas Hobbes, “nasty, brutish and short.”

Disease takes a terrible toll on all sectors of society, including the rich in the cities, but out in the countryside it’s particularly bad. Vaccines of any kind are distrusted as tools of the Illuminati. As a result, diseases that are easily preventable—polio, measles, rubella, chicken pox, etc.—kill and cripple tens of thousands every year, especially children. Infant mortality is frightful. There are no doctors in these outlying areas. They too were denounced long ago as tools of conspirators; during the revolution many doctors, accused of hiding cancer cures and collaborating with Illuminati-controlled pharmaceutical companies, were massacred or driven out of business. Even medical knowledge itself is dying out since all the medical schools were closed long ago.

The people who fare the worst in this society are Jews. Universally blamed for the imaginary conspiracies that supposedly brought society to the brink of ruin, Jews are refused entry to the cities, and in the countryside they are ruthlessly persecuted and massacred with regularity in horrific pogroms that resemble those of medieval Europe—except with automatic weapons. What few Jews remain have walled themselves up in heavily-armed ghettos with even worse conditions than the countryside whose virulently anti-Semitic (and heavily-armed) population they are hiding from. Nevertheless, as much as they hate Jews, the common people and the more powerful warlords of the countryside cannot organize any collective efforts to exterminate them, as much as they would like to. This inability is the only thing that allows the insular Jewish communities that still exist to carry on, hopeful that someday conditions will change and the world will come to its senses.

Zeitgeist City: A Special Corner of Hell.

One of the walled cities that exists in the anarchic countryside is a medium-sized settlement in swampy Florida. It was established during the revolution as a “Test City” for the RBE or “Resource Based Economy” model, advocated by an almost-forgotten conspiracist organization called the Zeitgeist Movement. Everyone calls this place “Zeitgeist City” for that reason. Inside its heavy steel walls, the convergence of paranoid conspiracist thinking and failed utopian ideology has created a very special kind of hell.

Zeitgeist City is a city of contrasts. In the center of its broad circular plazas there stands a gilded statue of Peter Joseph, creator of the Zeitgeist films, who is regarded in the city as sort of a savior and saint. Beyond the buildings and well-trimmed lawns, however, Zeitgeist City resembles Calcutta on a bad day. Thousands of people are crammed together in pathetic hovels with no running water or electricity. Except for the tasks assigned (without pay, of course) by the city’s ruling elite, there are no jobs; the ideology of an RBE society has outlawed labor as unnecessary. Crime is rampant, but, as the existence of crime conflicts with RBE ideology, it is generally ignored. Most people survive on a black market barter economy, the existence of which is ignored because it is also inconsistent with RBE ideology. Nearly everyone lives a hair’s breadth above starvation level. Although a central feature of the city is large-scale hydroponic vertical “farmscrapers,” these buildings are so energy-intensive and inefficient that they cannot grow very much food, and are not even functioning most of the time.

Everything in Zeitgeist City—every article of clothing, every shoddy consumer good, every plastic tub of tasteless processed food—is catalogued with a bar code. The worst offense in Zeitgeist City is to be caught possessing anything that doesn’t have a bar code. Armies of inventory control techs armed with laser scanners fan out through the city every day, scanning everything. All the codes are fed daily into a central computer system, which then allocates the resources according to a mysterious algorithm. Goods are then redistributed every morning according to the computer’s dictates. Thus, if the computer has decided that a spoon you own is better allocated to the family living next door to you in your squalid apartment, you must give it up to them. This redistribution occurs every day at the distribution centers, where Zeitgeist City dwellers spend most of their time waiting in line either to give up their possessions or receive somebody else’s. The lines, the distribution center and even the computer making the decisions are all under the control of the city’s elite rulers, who call themselves the Allocators. They enforce their dictate through violence. Anyone caught disobeying the dictates of the computer, or possessing property not officially allocated to them, is rounded up by the Allocators’ heavily-armed thugs and sent out of the city as slaves.

In theory the computer allocates resources based on “the scientific method.” Because this concept is meaningless when applied to resource allocation, however, in reality the computer distributes resources purely by random chance. That the resource allocation algorithm in the computer is actually a random number generator was such a closely-guarded secret that knowledge of it has died out. Even the Allocators themselves believe the computer has a methodology; they mistake the random decisions of the computer for “the scientific method,” and they don’t possess enough scientific acumen to notice the difference. Therefore, belief in the infallibility of the distribution computer has become a religious belief in Zeitgeist City. No one dares to question it.

Because Zeitgeist City produces virtually nothing, not even for its own people, it is entirely dependent upon imports of food and needed supplies from nearby Miami, a corporation-controlled walled city. Zeitgeist City compensates Miami by sending it regular shipments of slaves to replenish its labor force. In order to keep this arrangement going the Allocators insist that they possess a short-range missile, tipped with a nuclear warhead, with which they will obliterate Miami if the flow of aid ever stops. In reality there is no warhead and the missile is a non-functioning mock-up stolen from an aerospace museum, kept poised menacingly to the south in a public park surrounded by flowers and hedges. Zeitgeist City’s walls are heavily defended with heavy-caliber machine guns and SAM missiles. The Allocators tell their populace that the city is constantly under siege by Illuminati goons—referred to as Trolls—who are seeking to destroy the city in order to eliminate the proud example of RBE superiority. In reality the city is not under siege and the Trolls do not exist, but the Allocators fire the weapons along their walls a few times a day to promote the illusion that the siege is continuing. As in any other walled city, accusations of Illuminati complicity are routinely used as tools of terror to keep the populace in order, and an unending stream of pro-RBE and conspiracist propaganda flows from the Allocators’ many loudspeakers all over the city, within which every inhabitant is forever in earshot.

The Allocators claim, and not without some foundation, that Zeitgeist City is “the most progressive community in the United States.”

Knowledge—Forbidden Fruit.

The revolution that brought the conspiracy order to power was profoundly anti-intellectual. Experts on anything—especially scientists (who explained how things really worked), economists (who argued against the economic changes), historians (who explained how the past had really occurred) and doctors (who were accused of suppressing cancer cures and tainting vaccines)—were mercilessly persecuted and massacred. In the revolution, all the universities were closed. Many libraries were burned or destroyed, their books distrusted as tools of the Illuminati. The Internet was regarded as a much more pure and reliable source of knowledge, because the Internet contained “the truth” about conspiracies and books did not. As a result, in this conspiracist order, systemized education barely exists, libraries are virtually nonexistent, and most books are locked away and forgotten in vaults owned by the major city corporations—similar to the way books in the Middle Ages were locked up in monasteries.

The corporate managers of the cities, understanding that their power rests upon the perpetuation of conspiracy theories, carefully control what knowledge gets out to the common people. Any book or document that even remotely refutes or even questions conspiracy theories has been destroyed or altered after the fact to support conspiracy explanations. In this world, Osama bin Laden is lauded as a martyr, on whom the Illuminati unfairly blamed 9/11 and then assassinated him for this imaginary crime. Books or websites about Adolf Hitler routinely omit the Holocaust and instead laud his pro-free-market policies. American history books are wildly inaccurate, and present the country’s history as a relentless narrative of exploitation and conspiracies by the Illuminati and the Jews. Even science books contain numerous errors and omissions.

But, not many people read these books anyway; in fact, literacy has declined greatly because education as we now know it has ceased to exist. Most common people get all of their information from the Internet, which is controlled by the Information Corporation. There is very little written text on the Internet. Most material is either in the form of pictograms or videos. Almost all are either pornography, or simple morality plays dramatizing the evil and immorality of the Illuminati and the Jews. Most of these videos are less than a minute long and feature some hideously gory act of violence. Even very young children are desensitized to the most horrible images of human suffering, having been exposed to an unending stream of images of brutal retributions carried out against Illuminati sympathizers. Schools in the cities—at least for the common customer-serfs—consist almost entirely of pods where children surf the Internet for a few hours a day. Elite parents send their children (at exorbitant cost) to schools run by the Education Corporation, and in these schools there is some basic instruction in reading, math and shoddy third-rate science, but interspersed with very heavy doses of conspiracist and libertarian propaganda.

As the knowledge of true history, true science and critical thinking gradually fades, society is rapidly losing any real sense of its past or itself. Almost all events in history are reduced and simplified to a one-note narrative of exploitation by the Illuminati followed by the redemption of the revolution. Ancient history and the origins of man are described as being the result of extraterrestrial visitation. No one in this society knows that humans built the pyramids; even well-educated elites accept and honestly believe that all prehistoric structures of this nature were constructed by aliens. The major religions are all waning in practice. There are very few churches left. No one in this society has read or even heard of Shakespeare, of Tolstoy or of Leonardo Da Vinci. No one has ever been to an art museum or a music concert. In 100 years’ time, the collective store of human knowledge existing on Earth will have been reduced by half or more. It is truly a new Dark Age.

The Environment—A Rising Tide of Disaster.

Because there is no government, no environmental regulation and the city corporations have no incentive to be environmentally responsible, America is a stinking cesspool of environmental degradation. The corporation-run cities generate power through burning coal and oil—all reserves privately owned and controlled, of course. The cities export their garbage to the countryside where it sits in rotting heaps, breeding diseases and cancer clusters among the semi-feral rural population. Rural dwellers routinely build and furnish their own houses from the refuse of the cities, much of it contaminated. Because the corporate-run cities have no need for water treatment facilities—they can simply pump their sewage into the rivers at zero cost—rivers downstream of the major cities are indescribably foul. There are few forests left, the rural residents having deforested their lands for firewood.

The worst problem is global warming. Because the conspiracist order denounced anthropogenic global warming as a scam and a hoax by the Illuminati, even mentioning the existence of this problem is absolutely forbidden. Absolutely nothing has been done to ameliorate global warming—in fact, America’s carbon emissions since the revolution have increased, despite having much less industry, because the corporations that run the cities have changed over to dirtier and more inefficient means of energy production and industrial usage. Rising sea levels have inundated coastlines. In the larger coastal cities like New York, makeshift seawalls have been built to hold back the ocean (built by slave labor of customer-serfs), but in rural coastal areas, the rising sea levels have turned many areas into fetid swamps. These swamps breed mosquitoes, which results in a high incidence of malaria in areas where it had once been thought to be eradicated. Combined with society’s distrust of doctors—thanks to conspiracy theories about suppressed cancer cures and tainted vaccines—the mortality from tropical diseases is much higher than it was before the revolution.

Global warming has also made peoples’ jobs of feeding themselves much harder. Food crops are more difficult and costlier to raise, invasive and parasite species are hardier and more difficult to kill, and erosion of desiccated topsoil has turned Nebraska, Iowa and Kansas into semi-arid wastelands incapable of cultivation. The increased strength of hurricanes due to global warming results in large swaths of the Atlantic coast being decimated at regular intervals—and because there is no government there are no relief agencies. No one pays any attention to these problems. In the cities, even mentioning the words “global warming” will mark you as an Illuminati sympathizer; in the countryside, the scientific knowledge to explain what’s happening no longer exists. In the meantime greenhouse gases continue to foul the atmosphere at an ever-increasing rate. The disaster of global warming is now, fifty years after the revolution, far beyond man’s capacity to reverse it.

When the sun sets on this bleak country, filled with pollution and decay, its rays bleed through layers of carbon dioxide vapor and sulfuric acid. It sets on mosquito-infested marshes that were comfortable beachfront communities 60 years before. The clouds approaching on the horizon are filled with acid rain. Their caustic drops fall on acres of landfills and junkyards, oozing poison into a water table already contaminated with toxic chemicals and human feces. This is the brave new world that conspiracy ideology has built.

Conclusion

No sane person would wish for a world characterized by these specific results: desperate impoverishment, corporate feudalism, widespread violence, resurgent disease, intellectual and cultural stagnation, and environmental devastation. But this could very well be the world that would result from the policies and ideologies advocated by conspiracy theorists. Failure to understand the world and its problems as they really are, and blind adherence to ideologies and systems of thought that are clearly at odds with objective reality, will undoubtedly result in unintended consequences.

Yet, on some level, this is exactly the world Thrive wants to give us. This is a world where no one pays taxes, where there is no government coercion, where the Federal Reserve has been abolished and currency backed by gold, where the “free” market is totally unfettered, and where the populace is vigilant against conspiracies of any kind. This is a world where all people thrive.

Well—maybe not all.

“Follow the Money”–Debunked!

By SlayerX3

One of the central passages of Thrive is a section often referred to as “Follow the Money,” which Thrive fans treat as some sort of slogan. This section contains Foster Gamble and others’ views on fractional reserve banking, the Federal Reserve, the economic crisis, and conspiracy theories related to these. This article debunks those ideas.

Fraction Reserve Banking

Disclaimer:

Before the Wikipedia bashing begins, I’m using Wikipedia for two reasons: (1) Simplicity, and (2) it works well for summaries of information, even though I will provide further sources and more detailed information links than Wikipedia can provide.

PS: This part of the movie is incredibly complicated for anyone involved here to deal with, as given that most people don’t understand how economy and politics work by themselves, much less together, unless you’re well-versed in mathematics, economics or political science. Comments that simply complain about how wrong or rigged the actual political and economic systems are will be seen basically as an opinion and not fact.

It also doesn’t help that for the makers of Thrive the current economic system is a scam/conspiracy created by a powerful Financial Elite to perpetuate their own power. Arguing the existence of this conspiracy (Thrive mostly uses misinterpretations and opinions that they exist instead of verifiable facts) feels like beating a dead horse, thanks to our good old friend Confirmation Bias.

When they begin talking about Fractional Reserve Banking, Foster Gamble and and David Icke get a few things right at the beginning. They are right about how saving deposits are used by banks for loans and financing, but the film cuts short the explanation of why this happens and the economic reasons to use fractional reserve banking. Instead of explaining the real reasons behind this, the movie simply dismisses it by saying “it creates money out of nowhere.”

What is Fractional Reserve Banking?

Fractional Reserve Banking (FRB) is a form of banking where the deposits made on the bank are separated in two parts. The first is the amount the bank is allowed to loan and the second is the part the banks is obligated to keep as a reserve. This amount is dictated by the central bank of the country where the bank is operating.

Does it really “create money out of nowhere?”

The answer will depend of which kind of money you’re talking about. If you’re referring to printed money, it can’t “create money out of nowhere,” as the values being loaned and being circulated haven’t been made or printed yet.

If you’re talking about value: yes it can create more value since there is more money circulating than there is physical printed money.

This is much better explained by the links I’ll provide.

Why do banks work with FRB and how come they don’t “run out of money”?

Because it is fluid, FRB allows banks to generate profit and still provide access to people or business to acquire money for whatever reasons they need it–for example, to buy a house or start a business. FRB guarantees there will be money circulating for investments, consumer goods and to accommodate a growing and active economy.

[Muertos comment: this is not a new invention. If we did not have FRB in some form, our economy would be stuck in the early 19th century. The whole concept of modern banking, historically, developed as a means to permit sufficient capital to be accumulated to fund large-scale projects, both public and private. Without something like FRB, we would not have public works projects like dams, sewer systems or transportation, and we would not have privately-funded industries such as computers and information technology, because it simply wouldn’t be possible to get enough capital together to even begin to pay for these things. This is the historical reality that critics of FRB refuse to understand.]

The influx of savings deposits and payments on loans that they make usually are enough for most banks to be secure they will have the money needed to honor the withdrawals, as there are more people making payments and saving deposits than there are people making withdrawals of their own savings and assets.

What if there are more people making more withdrawals than the bank has money on reserve?

Remember the credit crisis that started in 2008 and is still kicking? One of the reasons why it went from bad to worse and from worse to a total disaster was because of this–people making more withdrawals than banks had in reserve. In times of economic crisis, if there is a doubt that the banks will be able to honor the deposits made on them, this leads to people and investors to withdraw all their assets within the bank in a really short amount of time, before other depositors can withdraw their share. This creates a cascade effect that can possibly (almost certainly) cause a bank run. This forces the bank to call in its short term loans, draw upon credit lines with other banks or ask for last resort rescue loans from the central bank.

Okay, but how this is bad for people?

In time of a stable economy this not bad for financially responsible people, those who take out loans that are smaller than their average yearly income and can make sure that the accumulated interest won’t surpass all their earnings during the intended financing period. Take for example financing the purchase of a house with a 10 year mortgage plan. It is, however, extremely dangerous for people who to borrow who are in unstable financial situations (like no job security, health problems, addictions) or do not measure how much interest they’re incurring compared to how much they earn, or people who simply don’t care about the long term consequences of their lack of foresight (I can’t miss the chance to throw this jab at the American reader).

In times of instability, however, irresponsible borrowing (and lending) can hit hard even the responsible people hard. This is what happened in 2008.

Gamble continues with a story telling how the fractional reserve banking system was born.

Setting aside Mr. Gamble’s implications of how it is used to create money on the backs of people (which is an arguable question), if you want to know how central banks and fractional reserve banking came to be, look for the history of the  Bank of Amsterdam.

Here are some links that further explain what FRB is and how it came about:

https://en.wikipedia.org/wiki/Fractional_reserve_banking

http://www.canadabanks.net/default.aspx?article=Fractional-Reserve+Banking

https://www.youtube.com/watch?v=nH2-37rTA8U (Khan Academy on FRB, quite educational I must add, as long as you avoid the comments section).

https://upload.wikimedia.org/wikipedia/commons/4/4a/Modern_Money_Mechanics.pdf

http://econpapers.repec.org/paper/wpawuwpma/0203005.htm (look for the download link)

https://en.wikipedia.org/wiki/Criticism_of_fractional_reserve_banking

Later Gamble states how FRB is used to create a population that is tied to their debts to the bank.

Then Thrive provides us with this quote: “It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning” – Henry Ford, 1922

The quote appears to be completely fake. Although it is commonly cited on conspiracy theorist, 9/11 Truth and “End the Fed” websites, there is no source and no context linking it to Henry Ford. Not even the dates that Ford supposedly said it are consistent.

https://en.wikiquote.org/wiki/Talk:Henry_Ford

https://en.wikiquote.org/wiki/Conspiracy#Attributed

[Muertos comment: conspiracy theorists love to use fake quotes, and this is not the only fake quote in Thrive–there’s a quote by Henry Kissinger that is equally false. The problem with these quotes is that, once it gets out there and conspiracy theorists decide they like it, a quote gets repeated all over the place on all sorts of conspiracy theorist websites–thus creating the erroneous impression that, because the quote appears so often, it must be true and accurate. If you don’t believe that this happens all the time, just think back on all the things comedian George Carlin is supposed to have said–only a small fraction of them are actually real Carlin quotes, and as he is dead, he can’t dispute that he didn’t say them.

When conspiracy theorists are challenged on fake quotes, many of them will say something like, “Well, you can’t prove that he didn’t say it!” That, of course, is asinine. You can’t just make up any crap you like, put it in someone’s mouth and then challenge people to prove they didn’t say it. But, sadly, this is how conspiracy theorists think. Quotes about banking are particularly attractive to conspiracy theorists because they love the idea of respected figures from history having supposedly “warned” us about the dangers that they (conspiracy theorists) insist are right around the corner.]

After the fake Henry Ford quote, Gamble resumes his rant on how we have become debt slaves of a financial elite who has rigged the system to their benefit.

Take this as you will, but you’ll become a debt slave if you decide to acquire (too much) debt in the first place. For many this seems unavoidable.

[Muertos comment: the term “debt slave” bothers me because it’s misleading. Suppose you have a good job and a family. You take out a 30-year mortgage at a reasonable interest rate in order to buy a bigger house to raise your kids in. You can easily make the payments and your house increases in equity in the meantime. Are you still a “debt slave” for the next 30 years? If you decide to sell the house you pay off the mortgage, and can take the equity and invest in a bigger house elsewhere. How is this “slavery”? And what’s the alternative–live in a smaller, crappier place and try to raise your kids there, where you don’t have room for them? Why is taking advantage of the opportunities that debt creates necessarily a bad thing? Thrive doesn’t see distinctions along these lines. In its ideology, all debt is bad.]

Catherine Austin Fitts

From Muertos’s article debunking the trailer:

Catherine Austin Fitts was Assistant Secretary for Housing in 1989-90 under the first George Bush. She is also a Wall Street banker. She currently works for an investment advisory firm called Solari, Inc.”

Ms. Fitts, along with Mr. Gamble, keeps reaffirming how FRB is used to print more money and enslave more people through debt. Later she makes a comparison with ordinary people counterfeiting money being a crime, while the [central] banks printing money being called “increasing the money supply” as if there’s no distinction here. There is a distinction. I don’t know, maybe it’s related to the fact that central banks are trusted institutions, and they are an effective way to control interest rates and the amount of money being circulated so as to make sure hyperinflation or hyper-deflation do not take place. Yes, said measures can fail, but it’s certainly not the same as “printing money” just for the hell of it.

Gamble then cites the gathering of the “secret” Morgans and Rockefellers on Jekyll Island, where (he says) the draft of the Federal Reserve was created.

First he fails to mention that a central banking system was already in place in Europe–especially in Germany–long before the bankers and politicians in US were considering using a central banking system. Second, politicians in US were already studying alternatives to the US Treasury bonds and lack of liquidity and access to credit, mostly in response to the Panic of 1907.

After this Gamble beings talking about the creation of the Fed and the Internal Revenue Service in the same year, “forcing us to pay for the politicians’ debt”, and introduces the viewer to G. Edward Griffin and his book.

G. Edward Griffin

Writer of “The Creature from Jekyll Island” which is about the creation the Fed, Griffin is a critic of the current banking system and advocates private currency as being “real money.” Needless to say, his ideas are quite popular amongst libertarian circles.

(If you want to know how bad this idea of “real money” is, just imagine going to the state next to yours just to find out that the private currency of your local bank, backed by a commodity like silver or gold, is worthless because the other state operates at different standards or doesn’t accept your currency. Or, worse yet, imagine if the bank goes bankrupt, all your assets in said bank are gone, and there is no central bank or institution to guarantee the bank will have the resources to honor its deposits).

[Muertos comment: we had precisely this problem in the Great Depression, which resulted in an entity called the Federal Deposit Insurance Corporation–an agency that makes sure that you, as a bank depositor, will be able to retrieve your money from that bank (up to $250,000, I think) even if the bank fails. Where would the money come from if the FDIC had to make you whole after your bank fails? It would come from a fund administered by the federal government. Doesn’t sound so bad when you think about it like that, does it?]

Griffin goes on about how the central banks are cartels that work with governments and have the legal power to create money out of nothing when the government needs it.

I think the “out of nothing” part of the money is not entirely nothing. There seems to be a massive misconception that when a central bank prints more currency, it’s simply creating more money out of nothing. First, it doesn’t happen this way. Even though the money is not backed by a scarce commodity (like gold), the value attributed to it is related to how trusted and reliable the country’s central bank is. Printing more money without the generation of wealth decreases the value of the money. This is why you can trade one US Dollar for 10,000 Zimbabwe Dollars, and the same reason why the Zimbabwe 1000 Dollar bill is worth less than the paper it’s printed on. Printing more money without generation of wealth will lead to inflation and the loss of value for the currency.

[Muertos comment: this has been proven time and time again historically, such as in the U.S. when “greenbacks” were printed to help finance the Civil War. It didn’t work then either.]

The central banks are not only able to create more money. They are also capable of removing money from circulation when needed. For example, during Christmas the US Federal Reserve prints more money to assure all the withdraws will be possible, and then they remove the extra bills from circulation afterwards.

When this happens, the fiat currency doesn’t lose its value because it is just a representation of the wealth that already does exist, even though most of this wealth is in form of data like the amount you have in your bank or how much all your declared belongs are worth. It doesn’t mean it’s worthless. It’s a representation. It’s not wealth itself.

Let’s put this way. The amount of wealth in dollars is X and the amount of printed paper money is Y. Because most of the wealth being traded, stored or transferred is in the form of savings, credits, stocks, checks and representations other than printed fiat currency, X will be always higher than Y, but when people are making withdrawals, collecting their payments or selling things, more money will begin to circulate from hand to hand. Since there is more money in data form than there is in the form of printed money, the Central Banks print the money and send bills to the local banks to make sure they are capable of handling all the money being moved and spent. This will make Y approach the amount of X, but if the amount of Y being printed and in circulation is  getting closer to the amount of X, there is a chance that Y will surpass X. This will lead to the devaluation of the currency on which X and Y operate, leading to inflation.

To put it in even more simple terms: when you print currency to represent wealth, you’re not creating money out of nowhere. When you print more currency than you have wealth, you’re lowering the value of the money. The amount of wealth is still the same but the value of the currency changes.

Bill Still on the Federal Reserve

Bill Still is another Libertarian film producer, highly critical of the monetary system in US.  He is also seeking the nomination from the Libertarian Party for the 2012 elections.

During his short appearance in Thrive, Mr. Still claims that the Fed is a privately-owned bank made to look like a government bank. To get his point across he says the Federal Reserve, instead of being on the blue government pages in the Washington DC area phone books, is on the white pages. He thinks this is evidence!

Since I don’t live in the US and I didn’t look at a phone book from the DC area during my short but pleasant stay in US, I have to say that was a really bad choice for evidence.

[Muertos comment: there are a lot of stupid assertions in Thrive, but this one has got to be in the top five most ridiculous things in the entire movie. I can’t believe Mr. Gamble let this one through–it’s simply insulting to the intelligence.]

Alan Greenspan on the government’s relations with the Federal Reserve

At 1:00:02 of the movie there is a short video clip in which Alan Greenspan claims that the Federal Reserve doesn’t take direct orders from the president or the Congress. This is used to show the Fed as a rogue agency that answers to no one.

This is totally wrong. Mr. Greenspan’s quote is taken out of context.

For starters, all members of the Federal Reserve Board of Governors, are handpicked by the president and approved by Senate vote. They are required by law to have a “fair representation of the financial, agricultural, industrial, and commercial interests and geographical divisions of the country.” This means they have to be scholars in economics, politics and above all they must represent the economic interests of the nation, not the interests of the Congress and not of the president. They are accountable for their actions which can lead to members of the board not being nominated again as well the formal and informal relationships of the board members with the president and the Congress.

There is a really good reason why the central banks usually don’t answer directly the executive chief in office and the Congress: if they did, politicians could use these banks for political gain and directly affect the economy. We need an independent Federal Reserve.

A brief study of history, especially looking at some South American countries and African countries, will show that when the politicians can control the decisions of the central banks and therefore dictate the course of the economy, the results are not pretty. More often than not this is completely disastrous for the country.

https://www.youtube.com/watch?v=3QkmLnNEvdU

Even though the title of the linked video and the comment section of the youtube page follow the same line of thought of the people featured in Thrive, I’d like the viewer to see the part beginning at 8:00 where Greenspan remembers that the actions taken by the Fed would hurt G.H.W. Bush’s reelection. Just think about that for a few minutes. What if Bush was able to change the decisions of the Fed for his own political gain? What would that do to the economy of the United States? This could potentially harm the economy more than it was already harmed in 1992 (which at that time was in a deep recession). This is why the Congress and the president don’t have much say in the decisions of the Fed, but the Fed is still accountable for its decisions. The people on the Federal Reserve Board were chosen by the president and approved by the Senate in the first place, making them accountable for their actions inside the Federal Reserve.

Here are some documents containing detailed explanations of the relations of the Federal Reserve with other branches of the US Government. As you will see, it’s far from an unaccountable rogue entity.

http://www.wisegeek.com/what-is-the-federal-reserve.htm

http://useconomy.about.com/od/governmentagencies/p/fed.htm

http://www.federalreserve.gov/boarddocs/speeches/2000/20001024.htm

http://www.publiceye.org/conspire/flaherty/flaherty3.html

“Economic parasite”

After this, Mr. Gamble and Ms. Fitts give us analogies on how the bankers use their data on the economy to benefit themselves at expense of others. I won’t argue much with that because it is happening, but not for the reasons  Gamble & friends would you like to believe.

FBI Raid

Since it is Mr. Gamble talking about the FBI raiding her (Ms. Fitts’s) company not her saying it, and nowhere in her company’s website or her bio mentions the said raid, I’m skeptical that it even happened. I also tried to look for news articles mentioning this raid hoping to see something like the paper shot Gamble gave us on the screen, but the only places I saw any mention of it were 9/11 Truth websites and a few truthers’ blogs without any external links or sources to this event beyond what their word for it.

[Muertos comment: always be skeptical of anything that appears on 9/11 Truth websites and nowhere else. 9/11 Truthers are notoriously incapable of getting almost anything right.]

Unless Ms. Fitts herself can come forward and explain in her own words what happened, or if someone can provide me a reliable link or newsfeed with info validating Mr. Gamble’s characterization of what happened, I’ll keep my sense of disbelief about the big government suppressing her findings, specially someone with credentials and political reach like her. (Blogs or forums do not count as reliable source; I’m talking about newspaper articles or public data).

[Muertos comment: given the fact that ten people who appear in Thrive have signed a letter repudiating the film and saying the movie was misrepresented to them, I wouldn’t be at all surprised if what Ms. Fitts would say about what happened would differ significantly from the way Mr. Gamble puts it in the film.]

The Dollar and the Sub-prime crisis:

Gamble begins this part with a moot point about the devaluation of the dollar, showing it from 1913 to 2010.

Remember when I discussed the matter of currency in circulation vs. the real value of wealth? Well, this is what happened: when the Federal Reserve came into being, having a regular universally recognized currency made trade easier both on the internal market as well the international market. It made the US economy more open to these markets, generating more trade, and as result more currency started to circulate. To compensate for the new amount of money circulating and more people earning more money, prices rose, because people where consuming more. This effect is called “demand-pull inflation.” This is regarded as the good kind of inflation because it shows that the country is THRIVING.

This doesn’t make people poor. If the prices are rising, so are peoples’ wages. Even if products have higher prices they still hold the same value. (The kind of inflation that rises both price and value is called “cost-push inflation,” and this happens due to the increase of production cost or scarcity. This is the bad kind of inflation).

But why doesn’t the currency return to its original value after a while? This happens because of an economic effect called “built-in inflation,” where past experiences dictate how the wages and prices will rise. Workers expect inflation to pinch in the future, so they start asking for higher wages to compensate. As a result, companies start raising the price of their products so they don’t lose their profit margins. Because this builds over time it becomes something like a change of currency or a hard economic crisis, where money is being hoarded and trading comes to a halt.

Even if you look to Mr. Gamble’s graph you’ll notice the periods when the dollar’s value rose were in the interwar period and during WWII, when US was still suffering from the 1929 stock crash that brought the US economy to its knees, and during WWII where all the US economy was focused on the war effort instead of producing consumer goods and trading. After those periods were over, trading resumed and, as expected, the value of the dollar declined as more currency began circulating again.

http://www.wisegeek.com/what-causes-inflation.htm

https://en.wikipedia.org/wiki/Built-in_inflation

https://en.wikipedia.org/wiki/Cost-push_inflation

https://en.wikipedia.org/wiki/Demand-pull_inflation

Wealth Gap

Same case as the “economic parasite” claim: the gap in wealth is a big problem, but Thrive has the wrong take on what is the cause.

No, I don’t have a magic bullet solution for wealth disparity. No one does. I do, however, support several policies involving fiscal responsibility, fair taxation, better public health and education plans, transparency from both government and corporate business and not reelecting the same politicians with histories of corruption and incompetence.

Bankers and crisis

Gamble tries to correlate the stock crash of 1929 and the Great Depression to the creation of the Fed. Logically correlation does not equal causation. If you take a look at what happened, the stock crash of 1929 was caused by reckless investments on high risk and speculative shares. With the investments boom more people where buying shares and raising market prices. This would only become viable if the stock market kept rising at a quick rate. If the rise wasn’t fast enough, halted or went into a downturn, those shares would lose their value. This was combined with the massive loans stock brokers were making to investors (called “margin”). The investor only had to pay 50% of the share value and the broker would complete the rest with his own money. Thousands of people taking loans to purchase more shares didn’t help as it was creating a massive economic bubble. As expected, once the stock market faced a downturn, mass panic selling followed, forcing the share’s values down creating a cycle where investors had to sell their shares to pay their brokers and avoid losing too much money with shares that by this time had lost all their value.

[Muertos comment: the causes of the Great Depression are still highly controversial today. There is no one clear answer, but what you’ve identified is clearly part of the problem–any basic book on the crash will make this case. It’s also not limited to 1929. I was working in the financial sector during the “dot com bust” of 2000-2001, and much the same thing happened–shares were grossly overvalued, and there was too much credit attached to financial speculation. When dot coms started to post less than impressive profit numbers, the whole thing collapsed. Something similar happened in 2008, except instead of stocks it was financial products tied to real estate.]

It is also worth remembering that the both people buying and selling the shares are normal people, prone to make mistakes, get nervous or act on impulse. This means one bad rumor in a highly volatile place such as the stock market can cause many stocks’ value to plummet. Do this on a large scale and you can get yourself a nice big crisis on your hands.

http://eh.net/encyclopedia/article/Bierman.Crash

http://stocks.fundamentalfinance.com/stock-market-crash-of-1929.php (this is a TL;DR version of the previous link)

I also would like to have access to this “research” Mr. Gamble claims did on the “major banks” moving their money away from the stock market before the crash, because I’m not able to find any reliable link or article showing that this in fact happened.

The 2008’s credit bubble crisis

This is the only thing preventing me to copy paste the debunking of Zeitgeist here and calling it a day.

But where do I start? First Foster Gamble and David Icke and their “research” (really, I’d like to see the data Gamble uses to make his statements) want to lead the viewer to believe the 2008 economic crash was a ploy engineered by the major banks to consolidate their power by breaking smaller business and seizing their assets.

But there are a few problems with this. For one those assets (mostly houses) have become worthless, and the bail outs are not even close to the amount lost by the banks during the crisis. Plus, why create an economic crisis in the first place? The last thing you want, if you’re a banker or an industrialist, is an economic crisis where people stop spending and the economy stagnates.

So what happened in the 2008’s subprime crisis?

It was caused by a combination of lack of foresight, greed, high interest rates, high risk investments and a complete lack of regulations for the financial sector (I can hear from here all the libertarians shrieking in horror after reading this).

Putting it in layman’s terms, before the 2008 crisis the housing sector in United States was one of the most attractive investments for a few reasons. First, the continuous rise of housing prices and the demand for new houses, and second the too low interest rates from the Federal Reserve that were not attractive to the investors anymore (they were around 1% during 2008).

Okay, what was the banks’ deal then?

They were buying the mortgages from lenders and then reselling them to investors looking for investments with better rates. The banks would proceed to lend more money, mostly from other major banks and from central banks, to acquire more mortgages. Then the banks would generate massive profits from all the homeowners paying their mortgages.

So far so good. But for them there was a problem: since this was one relatively safe and high profit deal, the banks wanted more people paying more mortgages on the rising housing prices.

When a financing company sold the mortgages for the banks, if the homeowner went into default the bank would get the house. This was attractive for the bank because the housing prices were rising at the time. This meant that when the mortgage broker sells the house at a new higher price, the lenders and the banks would make a better profit with the new mortgage payers.

Okay, but where do the problems begin?

The number of AAA home buyers (meaning, reliable and financially responsible people) buying houses was too low to sustain the kind of profits they wanted to make selling and flipping mortgages. So, not wanting to miss the opportunity of selling the houses at higher prices and collecting the higher mortgages, the banks and lenders started selling the houses to subprime families (non reliable people) that they knew would go into default in a matter of time so they could resell the house again and again. Major profits were made this way. The lender would sell the mortgage for the banks and then the bank would sell it to an investor willing to take the risk.

With this happening soon the number of houses going into default was increasing. The number of houses being placed on the market for sale was also rising, but the number of people looking for a house was not. Actually most of the people who could afford a house already had one and with the subprime families simply not paying, this was starting to drive the housing prices down. To make things worse, the people who could afford their high mortgages simply started abandoning their houses because now they were worth a fraction of what they used to be worth, and yet their mortgage was the same.

This left the banks with a lot of houses, but with no one paying for them. The banks borrowed massive amounts of money to buy those mortgages, and the lenders had a lot of houses with people who were going into default, and the investors had a lot of high risk deals that have become worthless. The investors were not able to sell the risk to anyone because by this time everyone noticed that things were not going as planned and stopped buying or selling, essentially freezing the banking and the financing market, bankrupting the banks, the investors and the lenders.

And the banks owned a lot of money they couldn’t pay back, usually to other large banks either in US or Europe, thus dragging those banks down into the crisis with them.

This is the simple explanation, but there are other factors that contributed to the crisis. For example, easy credit (it stimulated not only banks to borrow huge sums of money but also common folk), predatory lending (lending deals so long and prone to change that people were deceived into deals that aren’t what they are advertised) and underwriting (banks with mortgages that didn’t meet proper standards and selling them to other banks and investors) and deregulation of the banking industry (this made easier for banks and financing companies to pull their stunts without the government being able to interfere).

This showed that the banking system had serious problems both ethically and financially, but the reality is much less Machiavellian (and boring) than Gamble would you like to believe.

Back to the movie. We have Mr. Gamble explaining the crisis using a fish hook analogy to show how the financial elites consolidate their power. I’d bother to explain who this logic is wrong if I didn’t do it already above.

Again the banks won’t make major profit from a lot of houses with devaluated prices and with their credibility shot.

Gentlemen! Behold the links!

http://crisisofcredit.com/ (a friendly video explanation about how the crisis came to be)

http://www.mortgageguideuk.co.uk/blog/debt/credit-crunch-explained/

http://useconomy.about.com/od/criticalssues/f/What-Is-the-Global-Financial-Crisis-of-2008.htm

http://useconomy.about.com/od/themarkets/f/hedge_funds.htm

http://useconomy.about.com/b/2008/09/23/why-the-bailout-is-necessary.htm

http://www.federalreserve.gov/generalinfo/foia/emergency-lending-financial-crisis-20111206.pdf

http://www.guardian.co.uk/business/2009/apr/21/imf-huge-global-bank-losses

https://www.nytimes.com/2009/04/22/business/global/22fund.html?_r=1

http://beginnersinvest.about.com/od/banking/a/aa062405.htm

“Give me control over a nation’s money and I care not who makes her laws.”–Baron Mayer Amschel Rothschild

I can’t find this quote in any history source or website. The only result that purported to show where it came from besides attributing it to Amschel Rothschild is from The Creature of Jekyll Island.

And it featured in America: Freedom to Fascism.

Too bad Mayer Amschel Rothschild died in 1812, virtually a hundred years before the quote started making its first appearances during the early 20th century.

http://quotes.liberty-tree.ca/quote/mayer_amschel_rothschild_quote_8bed

https://en.wikipedia.org/wiki/America:_Freedom_to_Fascism#Quotation_of_Mayer_Amschel_Rothschild

[Google Books link discussing the quote]

Bank for International Settlements (BIS) and the International Monetary Fund (IMF)

There isn’t much to talk about the BIS and the IMF. The BIS acts like a hub for central banks to organize themselves, regularize the sector and push for transparency on the business. The IMF is a bank responsible for money lending programs enjoyed by its contributors. It is infamous for cases of sheer incompetence due to lack of touch with the reality of the countries they were lending money to or how the assistance programs are perceived by the local population.  Depending on who you ask or which country you’re talking about, the IMF can be either seen as a major tool for the development of a country or just a means for the developed and industrialized nations to explore the undeveloped ones.

Like the Federal Reserve and other “major banks,” Gamble also claims they are controlled by the financial elite.

http://www.bis.org/

http://www.investopedia.com/terms/b/bis.asp#axzz1sXrQrlhd

https://www.imf.org/external/index.htm

http://ifiwatchnet.org/

Conclusion

As with much else in Thrive, the “Follow the Money” section is long on rhetoric and short on identifiable facts. There are oversimplifications, important concepts left out, quotes whose truth can’t be identified, and a lot of distortions. This section isn’t done very much better than any other section in Thrive.

As difficult as this subject is, hopefully this analysis gives you something to work with as you evaluate the claims made by the movie.