November 22 article announcing Ellen Brown’s defection to the
Federal Reserve, I wrote this:
she tries to defend herself by saying, “This is consistent with
what I have always said,” then she is dumber than dirt, or else
she thinks her followers are dumber than dirt.
on November 24 with a
long article saying that this was no defection.
North, who purports to be an expert on the errors in my book Web
of Debt, has evidently not actually read it. In an article
posted on the Market Oracle on November 23, he says that in calling
QE2 a “bold precedent,” I have switched sides. He apparently missed
the chapter I wrote on this subject, first published in “Web of
Debt” in 2007, saying exactly what I am saying now.
Reserve is finally using its “quantitative easing” (QE) tool to
good purpose, and I’m endorsing that, not just for our central
bank but for any central bank anywhere that would be so bold.
We are back
to these two choices: (1) she is dumber than dirt; (2) she thinks
her followers are dumber than dirt. I really can’t decide whether
it’s #2 or both #1 and #2.
I have never
before argued publicly with anyone this intellectually ill-equipped.
I have been at this for 45 years, and Ellen Brown is really, truly
defenseless intellectually. Anyone who goes through my 52
original criticisms and my 30 responses to her responses will
see why I make this judgment.
At this point,
it is time for me to move to my next phase of criticism. My articles
smoked her out. She finally came clean. She is – and says she
always has been – a supporter of mass monetary inflation, no
matter who prints the money. If the central bank does this, that’s
fine with her.
her out, I now go to the next stage of my criticism. Ellen Brown
is the Pied Piper of Greenbackism. Her goal now is to lead the
Greenback faithful back into the camp of the Federal Reserve System.
Web of Debt as an anti-FED book. The cover pictures the FED
as a spider.
If we are to believe
her now, this was fake from day one. She never cared who does the
inflating, she now says. If Bernanke will do it, that’s fine with
her, she now says.
In all my years
of reading leftists – and she is a leftist – I have never
seen anything like this. She built a following on this theme: “The
Federal Reserve System is evil, because it is part of the fractional
reserve banking system. The FED is privately owned. It does not
issue real money. Real money is issued only by Congress.” Then,
in the space of four days, she tells her followers that the Federal
Reserve is doing the right thing. It is in fact the model for all
other central banks.
When you click
through to the page where her latest article is posted, you will
also find a posting by a reader who calls her on QE2′s inflation.
He cites TANSTAAFL: there ain’t no such thing as a free lunch. Here
is her answer – the monetary theory of her book, as I explained
from the beginning.
not getting something for nothing. The government gets goods and
services and pays for them with dollars, which represent claims
on the American people for an equivalent sum in goods and services.
The American people have received value and acknowledge that they
owe value in return. That’s what money is, and it should originate
with the government, not with banks. It should, but our government
won’t do it, so the next best thing is to borrow from our own central
bank, which creates the money and lends it interest-free. Rolled
over indefinitely, that amounts to the same thing.
I have never
seen anything like this. She built a large following with her book.
Her following came to her because she was a forthright critic of
the Federal Reserve System. Now she says that, while it is best
to have Congress print the fiat money, “our government won’t do
it, so the next best thing is to borrow from our own central bank,
which creates the money and lends it interest-free. Rolled over
indefinitely, that amounts to the same thing.”
Got that? The
Federal Reserve System is “the next best thing.”
It does no
good to pursue her on this. Ellen Brown is beyond my powers of psychological
But what about
her followers? They joined her because she was the most visible
opponent of the Federal Reserve who was not a gold coin standard
person, i.e., not an Austrian School critic of the FED. She seemed
to have all the answers. She had that neat book cover, with the
FED as a spider. But now, in just four days, she says there is no
big difference between the FED’s fiat money and Congress’s fiat
money (Greenbacks). The seeming differences, she says, “amount to
the same thing.”
They do? You
mean the book cover was a huge fraud? You mean that the FED is not
the evil spider? That is exactly what she means.
This is betrayal.
I have never seen anything like this.
I have seen
people switch. When Chicago School economist-judge Richard Posner
Keynesian in 2009 at the age of 70, overturning all of the work
of a lifetime, he set the standard. But he has now been eclipsed
by Ellen Brown. She switched, yet says she hasn’t. This says, loud
and clear, “I sucked you in, you dumb clucks!.”
My guess is
that most of her followers will not bat an eye. “We’re with you,
Ellen!” They are, indeed. They are now neutralized. They will say
no more in criticism of the Federal Reserve System. The FED has
now been baptized by the high priestess of fiat money. It is now
sacrosanct – second only to Congress in the Holy of Holies.
This is fate
of every crackpot movement. It attracts people who are upset with
the world. They don’t know exactly what is wrong, but something
is. Then the crackpot comes with THE ONE TRUE ANALYSIS and the inevitable
ONE TRUE ANSWER. Implement this solution, and the nightmare will
end: no muss, no fuss.
There are always
naive, trusting people who will join the ranks of the “liberated”
hard core. They feel that they are part of SOMETHING REALLY BIG.
They are part of THE WAVE OF THE FUTURE. The Communists attracted
such people for over a century. Their brave new world went down
in less than a year. It left them high and dry.
movement has always been led by crackpots offering THE BIG SOLUTION.
It has attracted people who want a leader. They don’t care what
the creed of the “church” is. They just want leadership. They want
They are sitting
gave them hope: hope in fiat money issued by Congress. Now she has
announced a bait-and-switch. She brought them into her circle by
positioning herself as the FED’s #1 critic. Then, three years later
– 72 hours after I finish answering all 30 of her responses
– she announced that the FED is the next best thing.
does a person do who has been attracted to her by her forthright
stand in The Web of Debt? She has just called him a fool.
How? By calling me a fool.
apparently missed the chapter I wrote on this subject, first published
in “Web of Debt” in 2007, saying exactly what I am saying now.
He also failed
to see this. He committed himself intellectually and emotionally
to her, and now she calls him a fool, a chump, a rube. She calls
all of her followers chumps.
with me, chumps. You have no idea where I’ll lead you next. But
you will follow. All of you will follow. I have led all of you into
the land of Oz. I, in fact, am the Wizard. I can turn night into
day. I can turn opposition to the FED into support of the FED. Above
all, I can turn paper money into wealth. I said that from day one.
You swallowed that, chumps. There is no limit to what you people
She is right.
There is no limit.
Here is my fantasy interview with her over QE2.