Microphone to talk to a socialist

How to talk to a Socialist

Weekly Irrefutable

“We are all socialists now.” – Newsweek Magazine[i]


There is a wrong way to talk to a socialist and then there is a right way; the wrong way may be entertaining but not effective, while the right way can be informative and have a positive impact on the person.

The Wrong Way: Talk about Hitler

When you tell a socialist that Hitler was a socialist and elected leader of a party called the “National Socialists” who created one of the most centrally planned economies the world have ever seen, the classic response will be: “that’s not socialism!” The conversation will immediately be over and the socialist will declare victory.

The hilarity becomes more pronounced when you show someone the NAZI’s 25-point program. Courtesy of Fordham university is an easy to read summary of 23 of the points:

  1. Unification of Greater Germany (Austria + Germany)
  2. Land + expansion
  3. Anti-Versailles – abrogation of the Treaty.
  4. Land and territory – lebensraum.
  5. Only a “member of the race” can be a citizen.
  6. Anti-semitism – No Jew can be a member of the race.
  7. Anti-foreigner – only citizens can live in Germany.
  8. No immigration – ref. to Jews fleeing programs.
  9. Everyone must work.
  10. Abolition of unearned income – “no rent-slavery”.
  11. Nationalisation of industry
  12. Division of profits
  13. Extension of old age welfare.
  14. Land reform
  15. Death to all criminals
  16. German law, not Roman law (anti- French Rev.)
  17. Education to teach “the German Way”
  18. Education of gifted children
  19. Protection of mother and child by outlawing child labour.
  20. Encouraging gymnastics and swimming
  21. Formation a national army.
  22. Duty of the state to provide for its volk.
  23. Duty of individuals to the state

If someone believes that ideas such as mandatory work, nationalisation of industry, division of profits, old age welfare, free education and protectionism under a centrally planned economy headed by a great leader is not socialism, then we must agree that you will have an uphill battle. The problem with this is that the socialist will be unable to reconcile how their understanding of socialism could lead to WW2 and around 50 million deaths. We must abandon this idea for now and focus on a new way, which may work because it involves slight subterfuge, that when revealed, could be enough to allow the socialist to think in a new light.

The Possible Right Way: The Bait

Don’t mention words like socialism or capitalism, just talk to them about economics, specifically central banking. To begin, you can mention how the “evil bankers” are in charge of the US monetary policy and the Federal Reserve.

You don’t want to confuse them, so don’t mention that the Federal Reserve gets an annual audit by KPMG; don’t tell them that they have 646,704,007 shares outstanding in which the US Government owns none; don’t tell them that its shareholders have been receiving a dividend for over 100 years funded by initial capital borrowed from the Fed; don’t tell them that since the great recession they have been paying interest on excess reserves to banks so they won’t lend to the public; don’t tell them the “Board of Governors operating expenses and currency costs” in 2018 totalled $1.6 Billion,[ii] and don’t try to explain how the Presidential appointment of the Chairman is meaningless.

Whatever you do, don’t immediately go for the knock out punch because if they don’t understand anything noted above then it won’t help your cause. Instead, go for one of the largest known thefts the world has ever seen, i.e. the balance sheet.

Ask them: “Isn’t it strange that the Fed created $4.2 Trillion out of thin air and then lent it at rates close to zero to the richest people in the world so that they could buy assets such as stocks, bonds and real estate?”

If you’re unfamiliar with the balance sheet it means that somewhere in the world, there are those who owe a combined total of $4.2 Trillion to the Fed. The borrowers comprise of the Fed’s owners and those national and international organizations or individuals who can borrow from them. You can see the balance sheet below, remembering this is an account receivable (asset) that was created when this money was lent out.

Data from Fed: Balance Sheet

Would the socialist not consider the actions of the Federal Reserve to be bad? In fact, shouldn’t every self-proclaimed socialist be against the Federal Reserve? If the idea is to tax billionaires and help the poor, shouldn’t the Fed be prevented from lending $4.2 Trillion to the most privileged members of society?

You can also ask about the U.S. Dollar and how well the Federal Reserve has done to protect it. Per the chart below you can see the purchasing power of the dollar, starting with the year 1913 = 100. Just over a century since inception, the purchasing power has gone from 100 to 3.8 or approaching zero.

Fed Graph: PPP of USD

The idea is to get the socialist to ask: “What purpose does it serve?”

We know that it gives trillions of dollars to the rich and it doesn’t protect the purchasing power of the dollar. If we add the impossible idea of controlling the money supply and interest rates become difficult for anyone to support them. The idea is to arrive at the conclusion that the Federal Reserve does not stand for the common good and that it should be abolished.

What would happen if every socialist became vehemently opposed to central banking and channeled their focus on this endeavour? Instead of supporting a political candidate, would the world not be a better place? Once understood, there is no credible reason as to why the Fed should exist nor why private bankers should profit off interest from money; to add insult to injury, the treasury physically does the “money printing,” yet a privately held corporation makes the interest on it!

The Switch

If you can convince someone that an organization (which is not owned by the government, has no reserves and isn’t even a bank) should be ended, without mentioning the words capitalism or socialism, then there is hope! Once you do that you can add:

Did you know that Austrian economics would support ending the Fed? Did you know they’ve been against fiat currency for over a century, and that they have written countless books noting the problems of fiat currency, along with numerous ideas on how to end the Federal Reserve?

The idea is to make a person consider how strange it is that all major political parties talk about tax schemes, wealth distribution schemes, tax breaks, bailouts and other monetary giveaways, but no one talks about central banking or the $4 Trillion that was given to the richest members of society. Few people understand the destruction of the dollar even if they do understand that prices increase at a rate a lot higher than 2% a year. The problem has always been that so few understand economics and even less understand central banking.

It would be great if everyone could consider the worldwide fervor of the masses and their leader’s thinking of the best method to confiscate wealth from a handful of billionaires, all the while a small group of bankers have confiscated trillions of dollar from everyone else.

Bonus Idea

The Fed reduced its balance sheet for all of 2018 until mid-year 2019 (you can see the dip in the first chart above); please take a look to see how the stock market did during that same period known as “Quantitative Tightening:”

DOW during QT

Good Luck.

EC


[i] John Meachan (February 6, 2009). “We Are All Socialists Now”.

[ii] Shares outstanding and operating expenses taken from Federal Reserve Banks Combined Financial Statements as of Years Ended December 31, 2018 and 2017 and Independent Auditor’s Report. Audited by KPMG.

Leave a Reply