“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.investopedia.com/terms/b/bis.asp#axzz1sXrQrlhd
https://www.imf.org/external/index.htm
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.
The Next Conspiracy Movie: The Trailer for Thrive, Debunked.
This blog was originally published here.
Dealing with conspiracy theories is like playing whack-a-mole. Every time you hammer one down, another one pops up in its place.
Just as we are witnessing the terminal decline of one so-called activist organization based on movies about conspiracy theories, another one appears to be rising. Yesterday, November 11, was the worldwide “premiere” of an Internet-based movie called Thrive. Yesterday morning I didn’t even know about it. But a lot of people have sent me links and messages about it, and given its splashy roll-out and the aggressive promotion that’s been put into the film, I can tell right away that I’m probably going to be spending a lot of time over the next few months dealing with Thrive and its fans.
Thrive is basically Zeitgeist 2.0. It’s a slick Internet film that pushes conspiracy theories and advocates for a utopian future that is—and I am not making this up—based on free energy technology given to us by extraterrestrials. The makers of Thrive have taken another page from the Zeitgeist playbook, by seeking to turn the hoped-for popularity of the Thrive movie into a “movement” (see their website). The film and the embryonic group around it seem to be the brainchild of one Foster Gamble, who believes in UFOs, ancient astronauts, free energy and the Illuminati (though he does not use that exact term). What does he want? Well, right now, he wants you to buy the movie for $5 online. I’m sure he’ll want something else after that, but let’s start with that.
The moment I started watching the trailer for Thrive I knew we were dealing with some serious crackpottery. Conspiracy theory media has come a long way in the last ten years. Zeitgeist blazed the trail, followed by Desteni’s low-tech but effective (and now defunct) strategy of proselytizing via YouTube; then came Garret LoPorto’s “Wayseer” thing (which I haven’t yet debunked), and now, Thrive. These are slick movies designed to appeal to frustrated young people—and also designed to induce them to believe in conspiracy theories. One of the people prominently featured in Thrive is arch-conspiracy theorist David Icke, who believes that shape-shifting reptilians secretly control the world. The Thrive Movement website contains a section called the “Global Domination Agenda” which vomits forth all sorts of conspiracy theories including Trilateral Commission, HAARP, FEMA camps, 9/11 and the Georgia Guidestones. If Thrive attains the popularity its makers obviously hope for, it is going to be a serious and troubling gateway drug for conspiracy theorists, the same way the Zeitgeist films were.
This said, you don’t even need to hear me explain why Thrive must be debunked. It must be. Stupidity and distortion on this order cannot be allowed to sit out there unchallenged. Therefore, this afternoon I put together what I believe may be the first debunking material on the Internet specifically targeted at the Thrive movie.
I have not seen the entire movie. (I don’t want to give conspiracy theorists any of my money, and in any event I’m quite sure it will show up free on the net very soon). This article debunks the trailer of the film, which runs 3 minutes, 39 seconds. As you can see, there’s plenty to debunk. Because the trailer is freely available on YouTube, I’m going to go ahead and embed it in this video just for the ease of accessing it. I realize I’m running the risk of increasing the visibility of what could turn out to be a very damaging film, but I think it’s worth it to show what it is I’m debunking.
As you can see, there’s plenty to debunk. Now, without further ado, I give you…Thrive!
The sources I’m relying on appear at the end of each section.
0:09 — Foster Gamble
Foster Gamble is a documentary filmmaker and formerly CEO of MindCenter Corporation. He has been active in issues involving pesticide spraying and an organization called “Stop the Spray.” A graduate of Princeton University—in what field I do not yet know—he is related to the Gamble family (of the corporation Procter & Gamble).
http://www.eon3.net/food/interviews/a_skirmish_won.html
http://www.rvml.org/calendar/wc07202004.htm
http://thrivemovement.com/faqs (section “How is Foster related to Procter & Gamble?”)
0:30 – V = 2π2Rr 2 Torus
A torus is a geometric figure. It’s defined as a surface of revolution generated by revolving a circle in three dimensional space about an axis coplanar with the circle. In most contexts it is assumed that the axis does not touch the circle—in this case the surface has a ring shape and is called a ring torus or simply torus if the ring shape is implicit.
http://en.wikipedia.org/wiki/Torus
This shape appears several times in the video. Presumably something about this shape is related to the idea of free energy derived from alien technology.
0:36 – Floor mosaic in Ephesus, Turkey
This is a common pattern in floor mosaics throughout the Roman and Byzantine era. Ephesus was an important city in the Byzantine Empire in the early Christian era. Without seeing the full film, it is not clear what significance is being put on this design.
0:44 – Edgar Mitchell, Apollo 14 Astronaut
Edgar Mitchell was a NASA scientist who walked on the moon in February 1971. During the mission he claims to have had a spiritual experience that he described in terms of “Savikalpa Samadhi,” a type of Eastern mystical experience. He believes in ESP and founded a think tank to investigate psychic phenomena. He has been a long time believer in the Roswell conspiracy that claims a UFO crashed in New Mexico in 1947 and alien bodies were recovered from it. NASA has gone on record denying that his claims are true.
http://en.wikipedia.org/wiki/Edgar_Mitchell
http://www.ascentmagazine.com/articles.aspx?articleID=195&issueID=30
http://www.youtube.com/watch?v=CwE0vDuTm48
0:49 – John Callahan, Senior FAA Official
John Callahan is a former FAA employee who has gone on record as claiming that the FAA has covered up incidents involving UFOs. He is most closely associated with an incident where a UFO was seen from a Japan Air Lines flight in November 1986, which he helped investigate. Callahan claims there was a cover-up of this incident but the corroboration of his story is sketchy at best.
http://www.cosmostv.org/2011/08/alaska-ufo-mystery-endures-25-years.html
http://en.wikipedia.org/wiki/Japan_Air_Lines_flight_1628_incident
0:55 – Osiris Temple, Abydos, Egypt
Another appearance of the “mysterious” pattern. Coupled with the Byzantine mosaic, this is intended to surprise us that the same shape is employed in two ancient cultures. How surprising is it really, though? The shape is a series of interlocking circles. How special is that? Would it take a genius to come up with that shape? Is it implausible to believe that two people, thousands of years apart, might have the same idea for a pattern of ceremonial artwork?
1:00 – “It’s burned into the atomic structure in some extraordinary way!”
I don’t know the story behind this claim, but this is extremely unlikely. Have atomic analyses been done on the artwork in temples from Abydos, Egypt? My (admittedly perfunctory) searching didn’t turn up anything. My suspicion is that this claim is simply false.
Nassim Haramein, Cosmologist, Inventor
Nassim Haramein is a New Age writer who has dabbled in topics involving “unified field theory,” which also pops up associated with Gamble’s name. He gives lectures on metaphysics and something called “the Schwarzchild Proton” that has absolutely no acceptance among mainstream physicists. Haramein evidently claims to be a “physicist,” but I cannot find a specific record of a Ph.D. in physics. He does not list a Ph.D. on his own website. He does not appear to be a real academic. I also found material associating him with various “Ancient Astronaut” theories.
http://psychedelicadventure.blogspot.com/2011/01/nassim-haramein-resonance-project.html
http://theresonanceproject.org/about/personnel
http://ezinearticles.com/?Its-A-Pyramid-Scheme&id=5904037
http://www.physicsforums.com/showthread.php?t=332671
1:09 – Crop Circles
Crop circles are not extraterrestrial, they are not amazing, they are not mystical, and they are not hard to make. They are a fraud, and were debunked a very long time ago.
http://www.skepdic.com/cropcirc.html
1:11 – “Free, safe energy!”
Gamble gushes about “free, safe energy” supposedly from aliens. Free energy is one of the most common delusions out there, and there are many debunkings of it. It doesn’t exist because it violates fundamental scientific principles.
http://wiki.4hv.org/index.php/Free_Energy_Debunking
http://www.yrad.com/cs/index2008.htm#may038
1:18 – Adam Trombly, Physicist, Inventor
Adam Trombly is a pseudoscientist who is closely associated with “free energy” devices, most notably something called a “Closed Path Homopolar Generator,” which is—you guessed it—yet another free energy/perpetual motion device. He is also a conspiracy theorist who claims his invention was suppressed (of course). Trombly is billed as a “physicist” but I cannot find any indication that he has a Ph.D. in physics.
http://cassiopaea.org/forum/index.php?topic=8510.0
http://www.economicexpert.com/5a/History:of:perpetual:motion:machines.htm
Note how the “technology” is shown in this part of the video. It’s obviously a computer generated image superimposed on the table in front of the panelists. But note, in the studio, lights have been shone on the faces of the men to make it look like the thing on the table is emitting light. This is a very curious deception.
1:27 – Nikola Tesla
Conspiracy theorists and pseudoscientists love Nikola Tesla, because he was working on a lot of weird stuff that could theoretically lead to lots of nifty science fiction machines. Consequently, if you want a machine that does X to exist, all you have to do is say that Tesla invented it and that the invention was suppressed, or that it’s an extension of something Tesla invented. After all, he died in 1943 and won’t be able to dispute you. Tesla’s theories, which I presume here are asserted as the scientific “basis” of Gamble and Trombly’s free energy devices, have even been used to explain the nonexistent “beam weapons” that some more extreme 9/11 Truthers like Judy Wood and Abraham Hafez Rodriguez claim destroyed the World Trade Center towers.
If Tesla appears in a “documentary” about free energy, be skeptical…be very, very skeptical.
http://en.wikipedia.org/wiki/Nikola_Tesla
1:29 – Steven Greer, M.D. – Director, the Disclosure Project
Steven Greer is a conspiracy theorist and self-proclaimed UFO abductee who claims he has had contact with aliens. He has offered no proof of these claims. The “Disclosure Project” is his own idea, an organization he started mainly to accuse the government of covering up UFOs. Not surprisingly, Greer has appeared many times on the Art Bell radio program. Art Bell and Whitley Strieber are buddy-buddy.
http://en.wikipedia.org/wiki/Disclosure_Project
1:38 – “The single largest industry in the world—energy!”
The energy industry is not the single largest industry in the world. According to the World Bank, it’s tourism. Sorry, guys.
http://www.apec-tourism.org/tourism-is-the-largest-industry-in-the-world-2
1:44 – “The suppression of UFO phenomena…”
No evidence to support this claim. I suspect that the full-length movie will contain the word “Roswell.” Just to get a head start, I’ll go ahead and post some links to debunk that.
http://www.yrad.com/cs/index2009.htm#may189
http://www.skepdic.com/roswell.html
1:51 – “An elite group of people…”
Oh, you mean the Illuminati? Not that shit again. How many times do we have to debunk this ridiculous conspiracy theory before people will understand that the Illuminati do not exist?
http://www.skepdic.com/illuminati.html
http://www.yrad.com/cs/index2007.htm#oct227
2:02 – Deepak Chopra
I’m not surprised Mr. C. (I won’t call him “Dr. C” because I’m not sure his Indian doctorate is valid in the US) is popping up in a movie like this. You know him. Alt quackery, health woo, all that sort of thing. In case you need to educate yourself as to why Chopra is not a very good source of scientific and medical information, I’ll post a link to debunk him.
http://www.skepdic.com/chopra.html
2:09 – “Connect the dots!”
Conspiracy theorists love to “connect the dots.” It’s the only thing they can do, because there’s no direct evidence of their claims. This is a false methodology used by conspiracy theorists to bamboozle people into thinking “this can’t be a coincidence!” It’s also what passes for reasoning behind the Illuminati and puppet master type conspiracy theories, which Thrive seems to traffic in quite heavily.
2:10 – Bill Still, Author, The Money Masters
Still has written books bashing the U.S. money system and grinding his ax against the Federal Reserve, which most conspiracy theorists hate. He gives a patina of legitimacy to the usual hysterical anti-Fed arguments you hear circulating in conspiracy theorist, Libertarian and Ron Paulfanboy circles. Oh, did I mention that Still is running for president in the Libertarian Party? Does that surprise you?
http://en.wikipedia.org/wiki/Bill_Still
2:13 – Federal Reserve conspiracies
What pan-conspiracy film would be complete without alleging that the Federal Reserve is a private corporation bent on controlling all money in the US? The usual crap from anti-Fed people, made recently popular by Ron Paul and his gang of right-wing fringe followers. The Federal Reserve is not a private corporation, it is subject to law, and it is audited. But facts won’t get in the way of conspiracy theorists’ damning of it, so why should this be different?
http://www.famguardian.org/Subjects/MoneyBanking/FederalReserve/FRconspire/FRconspire.htm
2:18 – Alan Greenspan, no one can overrule the Federal Reserve
Doing a search for the text of this quote brought up an explosion of anti-Federal Reserve crazy. It’s going to take days to weed through it all and I’m not sure I want to do it, so I may be lazy and let some debunker come to my rescue with the full text of Greenspan’s comments. I’m 99% sure that this quote is taken egregiously out of context, because that’s what conspiracy theorists do, and if they attach as much importance to something as they seem to have for this quote, the chances of it not being taken out of context are almost zero.
2:16 – Catherine Austin Fitts, former Assistant Secretary of US Department of H.U.D.
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. I suspect she’s being taken out of context too, because browsing her résumé it seems she’s way too sane to voluntarily participate in a nutty conspiracy theorist documentary.
http://solari.com/about-us/resume/
2:30 – David Icke
David Icke is probably the most influential conspiracy theorist in the world, even more so than Alex Jones. He is also insane. He believes that the world is secretly controlled by Jews reptilian shape-shifting aliens, and that the Jews aliens have secret bloodlines, rituals and symbology that they advertise so the whole world can see. Just browsing some of Icke’s stuff leads to two inescapable conclusions: first, that his elevator is not going to the top floor, and second, that he really, really, really hates Jews reptilian shape-shifting aliens.
Any supposed “documentary” that quotes Icke or uses him seriously as a source is automatically disqualified as reliable in any way, for any reason. Icke is absolutely radioactive. His hate-filled conspiracy moonbattery is the ideological basis (if you can call it that) for the Desteni cult.
2:36 – Rockefellers
This belongs in the “Illuminati” category. Here we’re shown pictures of influential people with the name Rockefeller. From this you’re supposed to infer that Rockefellers control the world. My guess is that in the full-length movie the Rothschilds are probably added to the bunch, and I’m confident enough that the words “Bilderberg Group” will appear in the full-length movie that I’m going to go ahead and add a debunking link for it.
http://skeptoid.com/episodes/4225
2:52 – Elisabet Sahtouris, Ph.D., Evolutionary Biologist
Dr. Sahtouris is the first person in this movie who actually has a real, verifiable Ph.D. Too bad I can’t quite figure out what it’s in. (I assume biology). Anyway, she lectures on evolution of humanity and how to create a better future. Given that she, like Catherine Fitts, sounds completely sane, I suspect that her inclusion in this movie is somewhat unwitting. Another clue that tells me this is that she appears to believe in global warming. While global warming isn’t mentioned in the Thrive trailer, I would lay odds that most of Thrive’s target audience believes that global warming is a hoax. Most conspiracy theorists do. I do not think Dr. Sahtouris is a conspiracy theorist. Indeed she looks like a very nice person, which makes me wonder what she’s doing in this movie.
http://www.sahtouris.com/pdfs/A2011Flyer.pdf
3:01 – Paul Hawken, Founder, Natural Capital Institute
Paul Hawken is a California businessman and environmentalist. He advocates for socially and environmentally responsible business practices (and I certainly agree with that). He hosted a 17-part series on PBS about running socially responsible businesses. Again, another sane person who makes me wonder if he was told he was going to be in the same movie as David Icke and Adam Trombly.
http://en.wikipedia.org/wiki/Paul_Hawken
3:04 – Kimberly Carter Gamble, CEO, Clear Compass Media
Kimberly Carter Gamble is the wife of Foster Gamble. On the Thrive Movement webpage, she quotes David Icke, not an auspicious start: “Having the courage to risk stepping out of what David Icke calls the “hassle-free zone” is the quality I am most proud to have mustered in this life, and it felt great to infuse the clarity and compassion that come from that process into the story – and production – of THRIVE.” But does she believe in reptoids?
http://thrivemovement.com/about_us
3:10 – Martin Luther King
Some shameless self-promotion here by inviting the comparison between Thrive and Dr. Martin Luther King. I hate it when conspiracy theorists do this. When Peter Joseph Merola of the Zeitgeist Movement compared himself to Martin Luther King, it drove me berserk. I have a dream that people would stop comparing themselves to Martin Luther King.
3:12 – angel Kyodo williams
To my surprise, the title card identifying angel Kyodo williams, despite its odd capitalization, is correct—she really does write her name that way. Ms. williams is a Zen Buddhist and wrote a book trying to make Zen accessible to African-Americans.
I am, again, virtually certain that Ms. williams does not fully understand the views and background of the people behind Thrive. I seriously doubt that a person who is obviously a dedicated activist for African-American issues would consent to be in the same movie with David Icke (who as you remember really hates Jews reptilian shape-shifting aliens) if she knew about the baggage he carries. This makes me skeptical of the disclosures that were done during the making of this film.
http://angelkyodowilliams.com/bio/
3:15 – Amy Goodman, Host, Democracy Now!
Democracy Now! is a radio program on the Pacifica radio network, dedicated to progressive causes. I’ve never listened to the show, but browsing their material there seems to be a lot of stuff I agree with. Amy Goodman was arrested along with two other reporters at the 2008 Republican National Convention despite having committed no crime. The charges were eventually dropped.
As with several other respectable names here (Fitts, Hawken, Sahtouris, williams) I wonder what she is doing in a conspiracy theory movie.
Conclusion
Assuming the full-length Thrive movie follows the general pattern of the trailer, I think we can see a basic road map emerging as to how the full-length film and the movement it hopes to spawn can be debunked. I’m starting early, on only the second day that Thrive has been out, in the hopes that the movie will attract some attention from debunkers who can tag it with the facts and expose the errors and misstatements contained in it, which, as you can see from the trailer alone, are considerable. I’d like to say I’m looking forward to seeing the final film, but the truth is, I’m not. I have a feeling it will make me very angry. In any event, it seemed that some people out there thought it appropriate that I take a look at it, so here it is. I’ll be keeping tabs on this movie and this organization and may post updates later on.
Thanks for reading.
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