Gary North on current economic affairs and investment marketsGary North -- Specific Answers
HomeContact MeTell a FriendText SizeSearchMember Area
Gain immediate access to all of our current articles, the question-and-answer forums, dozens of free books, and article archives. Click here for details on how to join.

About This Site
Academic Gaps
Articles
Capitalism and the Bible
Clichés of Protectionism
College Finances
Debt Management
Ellen Brown: Critique
Federal Reserve Charts
Gary North's Free Books
Get Published Here!
Gold Price & My Report
Keynes Project
Price Index (U.S.A.)
Questions for Jim Wallis
Remnant Review
Social Security/Medicare
Sustained Revival
Tea Party Economist
U.S. Debt Clock
Yield Curve
Your YouTube Channel
Gary North's Miscellany
Advertising
Blogging
Budgeting for Wealth
Business Start-Up
Career Advancement
Digital Tools
Education That Works
Evernote: Free Notes
Federal Reserve Policy
Fireproof Your Job
Goal-Setting for Success
Great Default
Inheritance Strategies
Insurance
International Investing
Investment Basics
Job and Calling
Keynesian Economics
Leadership
Marketing Case Studies
Obamanomics
Precious Metals
Real Estate
Retirement
Safe Places
State of the Economy
Stocks and Bonds
Study Habits
Video Channel Profits
Members' Free Manuals
Our Products
Contact Me
Help
Tell a Friend
Text Size
Your Account
My 100% Guarantee
Privacy Policy
Terms of Use


This site powered by MemberGate

Economic Error #3: Scarcity Is the Result of Greedy Bankers.

Gary North
Printer-Friendly Format

Ellen Brown has adopted the oldest and most erroneous socialist argument: scarcity as the product of human institutions.

She writes that people are greedy. So, what else is new? She writes that bankers are greedy. My, oh my: what a revelation! She writes that a reform of money will eliminate scarcity.

The Bible says that scarcity comes from God's curse on Adam for his sin (Genesis 3:17-19). The economist says that scarcity is the product of a fundamental limit on the environment. The Darwinist says the same thing. But Ellen Brown breaks with all this. She favorably quotes a man named Bernard Lietaer. He is not an economist.

[G]reed and competition are not a result of immutable human temperament. . . . [G]reed and fear of scarcity are in fact being continuously created and amplified as a direct result of the kind of money we are using. . . .[W]e can produce more than enough food to feed everybody, and there is definitely enough work for everybody in the world, but there is clearly not enough money to pay for it all. The scarcity is in our national currencies. In fact, the job of central banks is to create and maintain that currency scarcity. The direct consequence is that we have to fight with each other in order to survive. [Web of Debt, p. 31]

This sounds borderline nuts. We are asked to believe there is enough food to feed everyone, but not enough money. We are asked to believe that if some African politicians print up pieces of paper with politicians' pictures on them, no one in Africa will ever need to starve. There is all that food out there, somewhere; all that the people of Africa need to do is get some pieces of official government paper.

I hate to mince words. This view of scarcity is the official socialist Party Line. It has been for two centuries. Let's boil it down into one sentence: There is such a thing as a free lunch if government structures the economy correctly. The socialists said that socialist central planning will eliminate scarcity. Ellen Brown thinks that officially certified pieces of paper will do it. I find it easier to believe the socialists.

As I say, it sounds borderline nuts. But if you read the whole article, you see that it clearly crosses the border. Here is what she failed to quote from what Lietaer wrote. You can get some idea of what Ellen Brown regards as reliable economics.

The question I have been asking is very simple: What are the shadows of the Great Mother archetype? I'm proposing that these shadows are greed and fear of scarcity. So it should come as no surprise that in Victorian times -- at the apex of the repression of the Great Mother -- a Scottish schoolmaster named Adam Smith noticed a lot of greed and scarcity around him and assumed that was how all "civilized" societies worked. Smith, as you know, created modern economics, which can be defined as a way of allocating scarce resources through the mechanism of individual, personal greed.

SARAH : Wow! So if greed and scarcity are the shadows, what does the Great Mother archetype herself represent in terms of economics?

BERNARD : Let's first distinguish between the Goddess, who represented all aspects of the Divine, and the Great Mother, who specifically symbolizes planet Earth -- fertility, nature, the flow of abundance in all aspects of life. Someone who has assimilated the Great Mother archetype trusts in the abundance of the universe. It's when you lack trust that you want a big bank account. The first guy who accumulated a lot of stuff as protection against future uncertainty automatically had to start defending his pile against everybody else's envy and needs. If a society is afraid of scarcity, it will actually create an environment in which it manifests well-grounded reasons to live in fear of scarcity. It is a self-fulfilling prophecy!

Also, we have been living for a long time under the belief that we need to create scarcity to create value. Although that is valid in some material domains, we extrapolate it to other domains where it may not be valid. For example, there's nothing to prevent us from freely distributing information. The marginal cost of information today is practically nil. Nevertheless, we invent copyrights and patents in an attempt to keep it scarce.

SARAH : So fear of scarcity creates greed and hoarding, which in turn creates the scarcity that was feared. Whereas cultures that embody the Great Mother are based on abundance and generosity. Those ideas are implicit in the way you've defined community, are they not?

This is not economics. The is New Age touchy-feelie mysticism. You can read the entire article here.

Ellen Brown relies on Lietaer's weird distinction between patriarchal and matriarchal economic systems. She quotes his book, The Mystery of Money, to begin Chapter 5: "From Matriarchies of Abundance to Patriarchies of Debt." In a long essay, "An Integral View on Money and Financial Crashes," Lietaer writes this:

2. The more hyper-rational a market, the more likely it is to get caught in a mania.

Mythologically, as shown in the Bacchae, it is the Apollonian ruler, not those who embrace the "messiness" of the Dionysian space, who end up being dismembered. In other words, the more we defend ourselves against the Dionysian uncertainty, the more likely that we attract his "madness." This could explain why the most sophisticated markets are the ones who get caught in manias. It is because of their very sophistication that the illusion of control is most prevailing. The more tools we accumulate to ensure a permanent Apollonian certainty, the more likely it is that we will attract a Dionysian outburst.

If you think this sounds nutty, I'm with you.

Ellen Brown builds her entire theory of economics on this man's work. Anyone who thinks she has based her analysis on economics really is naive. The World Wide Web lets us follow her footnotes. That is what I am doing, article by article in this department on her theoretical errors.

It gets worse. Much worse. Stay with me.

For a detailed critique of Ellen Brown's economics, go here:

http://www.garynorth.com/public/department141.cfm




Printer-Friendly Format

 Tip of the Week
Sign up for my free
Tip of the Week
Verification Characters:    Type     6  C  R  2  7     here   


Tip of the week archives
On what this icon
means, and how it
can help you,
click here
 Q & A Forums
General Q&A Forum
Advertising and Resumés
Affiliates
American History Topics
Backyard Food Gardening
Banking and Politics
Blog Sites and Web Sites
Books Worth Reading
Bumper Sticker Slogans
Business Forum
Buying Smart
Christian Service Forum
College -- The Cheap Way
Copywriting
Education Alternatives
Food Storage
For Women Only
Fukushima
GNC Benefits
GNC Testimonials
Gold and Silver
Great Default Forum
Health and Diet
Health Insurance
Homeschooling
Investments Forum
Iran War
Job, Calling, and Career
Leadership Development
Legacy Building
Less Dependent Living
Local Political Action
Non-Retirement Forum
One Good Idea
Police State
Privacy
Public Speaking
Real Estate Forum
Remnant Review Forum
Safe Places Forum
Taxation Policy
Typographical Errors
Video Production Basics

 Archives
Reality Check
 Discussion Forum
Search Discussion


Recent Forum Posts
• Job Candidacy
• an unconventional guide to investing...
• Strong Dollar
• Foreign Currencies
• Watch Junk Bonds For Early Warnings Of Fin. Crisis
• Where to start?
• investing for the beginner
• PIMCO
• Alibaba IPO
• Two Questions: 401k and Pension
• Investment advice - for a family
• Where To Safely Park A Large Amount Of Cash
• How do you invest in this system.
• Retirement Fund: Advertising budget
• Kotlikoff says SIPC insurance is a fraud
• Renting to college students
• On Making an Offer
• SEC Commissioner Warns of Financial Crisis
• Big Data for real estate?
• flooring for rentals
• Mortgage Ideas
• Sister's rental was given 24 hours no cause vacat
• Managers for Rental Property
• GN's article about "a place in the country&q
• GN's article about "a place in the country&q
• Recourse vs. Non-Recourse Loans
• Emergency Preparedness
• Nashville - Smyrna, TN Real Estate Market
• First Time Buyer Hesitations
• condominium's
• Moving TO the US?
• No City for Old People
• Will you die getting to your bug out location?
• teaching English overseas - some questions
• The state with the most Liberty
• Switzerland and Firearms
• On "Zip Code Searching On The Web"
• Crash Course in becoming an Expat
• Anyone tried Puerto Rico?
• Chattanooga, Tennessee
• Middle Class squeezed out of Chicago
• An Article on Chile
• 5 Amazing, Cheap Places to Live as an Expat
• Oil Field Job Security
• Moving to TriCities Area
• Question on Traditional Pensions
• advice on how do I interact with my older parents?
• Do You Sincerely Want to Be Rich? Why?
• Req. For No 401(k)/Other Pensions via Relocatio
• Cashing out 401K to pay student debt?
• SS @ 62 and still working
• Desolation or Prosperity?
• I take it Retirement Armageddon is not available
• Post Retirement Career
• Social Security - when to start collecting
• 401K Risk
• Detroit Retirees Fight 83% Health Care Cut
• Lump Sum Early DROP
• Underfunded pensions
• 401k strategy
• New Computer
• Dealing with Tyrants
• Dr. North Dr. Vieira needs your advice
• Fred on Black Power
• new forum?
• Objective Assessment of Thoreau
• What to do with a LARGE Financial Windfall
• Hurrah-QE has saved the US says Ambrose
• After IBM Deal With Twitter, Watson Supercomputer
• The Sistine Chapel Got an LED Upgrade
• Why Intelligent Computers Are Unlikely?
• Do your investments really matter ?
• Some Blacks are waking up
• The Keynes Project and Distortion of Say's Law
• Steve Jobs solution to cubicle problem
• how to decide on a price for my subscription site?
• HP plans to make 3-D printing everyday thing
• Attn eBay'ers: Turbo Lister 2
• 5 Business lessons from Escort (USP)
• Value of Equity in a small business
• Idea for a reality show--"Do That Job!"
• Dun & Bradstreet information
• Warren Buffett and that other guy.
• Requirements for start-up?
• Apple and/or Android?
• Getting kicked out by the state
• Alexa manipulating internet rankings ?
• Business Idea - Book Summaries for Sale
• Millionaires you've never heard of
• Numismatic seller wants more exposure