We have a fiat currency, the ‘value’ is arbitrarily assigned and has no intrinsic worth. When the Fed prints more money it is actually printing debt- as the only value the currency has is derived from the promise of return over time with interest.
Debt is the promise to return value over time with interest for a product or service used today. In this case the product is money itself. Money and debt have become the same thing.
Currency is a mutually agreed to symbol, with a mutually agreed to value. Currency is a place holder for value, it is not, cannot, will never be, value itself. Today’s currency is based on debt, the promise of return of value in the future for goods or services received today. Having no value in and of itself, it borrows value from tomorrow. The buying power of today’s dollar is an arbitrary figure, with no relationship to real value.
Money is what poor people use to pay for things like the mortgage, the rent, utilities, food and clothes for the kids. In other words- we’re using debt, to pay for our debt. Wealth, on the other hand is the acquisition of resources- which have a real value.
The TARPs, the bailouts, all the taxpayer funded welfare being funneled into banks and insurance companies and the housing market are being used to artificially support inflated markets. The truth is that all these institutions are upside down- the debt owed surpasses the real value in all of them.
In very real terms, if you’re fortunate enough not to have been foreclosed on, you’re locked into years of debt in order to pay for a home that is worth one third to one quarter of it’s real value. Currently the debt surpasses all real value to be had.
This is what happens when supply and demand are removed from the market place. This is supply-side voodoo economics, in your home and in your pocket. Value is borrowed from tomorrow until there are not enough tomorrows.
It’s all made up. And no one knows how to fix it, because it is a fiction removed from real life criteria of empirical knowledge and not held to the standards of cause and effect. It is a religion, a mode of behavior, a mind set.
The problem isn’t that there’s not enough money. There’s lots and lots of money. It’s just that a handful of people are getting all of it, and they’re using it to buy things of real value, passing debt on in exchange for value today.
The problem is that there’s too much debt. Way too much of it. Remember- the debt is manufactured, a construct of the human mind. When the Fed prints money it is performing a sorcery- it is taking pieces of paper and investing those pieces of paper with value. The value is being magically transported from the future, promises made today that over time the value not present in the now will be replaced with real value.
We accept without question that it is normal, fair, right- even moral- that a person who has enough money can buy resources like oil, or land or water, and own the rights to such things as energy or food production. In this case they are trading in those place-holders for value- which we call money- for things of real value- which we call resources.
That’s a neat trick. “Here, I have this stack of debt, this bundle of promises, I’ll give it to you for the oil under your property. Don’t worry, I’ll sell it back to you- piecemeal for a profit.” There are many examples of this sort of double think, this illusory reality, but consider this one as a prime example of how nonsensical this economy has become: A credit card is nothing more than a pre-approved loan. It’s a loan you carry in your pocket. If you use it, you enter into debt. If you don’t use it, you are charged a fee for non-use. So you are being charged for not going into debt. “Here, you can borrow this much money from me. You don’t want to borrow it? Then I’ll have to charge you for not borrowing it…”
Every government on Earth is in debt. Over 7 billion human are also in debt. That’s a LOT of debt. I have read that the combined debt for all the governments on Earth is estimated to be somewhere between 40 trillion dollars and 65 trillion dollars. These figures do not include personal debt, which is incalculable as it covers the smallest credit card use to buy a gallon of milk up to a loan of hundreds of thousands of dollars for a home or as a start up for a small business.
Let’s get some perspective on this number we all bandy about- this thing called a “trillion.”
One trillion dollars in new crisp one hundred dollar bills would occupy about 400,000 cubic feet and would fill over 168 forty foot shipping containers. If those forty foot shipping containers were to be placed end to end, the string of those forty foot shipping containers would extend over 1.27 miles.
Now if we assume that all world government debt is the lower estimate given- imagine forty times that amount: Forty trillion dollars would be a row of forty foot shipping containers 50.8 miles long.
And that’s in $100.00 dollar bills. One dollar bills would require 100 times more space, or a row of forty foot shipping containers that would stretch for 5,080 miles.
The simple fact is that there are not enough resources, not enough real value, in all of the Earth to pay that debt. All of the gold, all of the oil, all of the gems and minerals and land and water and homes and livestock and art and treasure- everything you could pick up or touch- would not be enough to make up the value of that debt, with interest. If no further debt where incurred by any government on Earth, and each government devoted 50% of all taxes collected to paying the current debt- the payments would never end because the amount paid would not even cover the compound interest charges, so the principle would remain. Forever and ever.
Amen! It is a faith, mutually agreed to, loved, honored, defended, with it’s own justifications for being, it’s own reality, and we are all believers.
There is no collateral on all that debt- except for the promise of value derived over time with interest. In-so-far as all the physical resources on Earth are not adequate to equal the insane amount required to make good on this debt- the only thing of value remaining is labor. Labor- your work, what you do to make ends meet, to earn ‘money,’ to buy the essentials of life like shelter and food.
All other value has been subsumed. Your lifetime, spent laboring to acquire essentials is the only thing of real value remaining in the world.
There is a word used to describe a person whose labor is directed by another, whose labor is for the benefit of another, whose reward for that labor is to receive the bare essentials necessary for life.
That word is “Slave.”
Who do we all this debt to- who’s holding the paperwork on this mortgage? Who controls all the resources, all the labor? Who directs that labor, and who benefits from it?
A handful of multi-billionaires. The ruling elite.
Are you thinking what I’m thinking, Pinky?
There is no schism between the ruling elite. They are not Democrats or Republicans or Third Parties, they are the Owners. And this is not conspiracy theory. You don’t need to postulate some archaic secret organization hell bent on subverting the world.
The simple fact is that as more and more resource coalesces into fewer and fewer hands enlightened self interest becomes of benefit to all of this small group. What’s good for one billionaire is good for all of them.
The results are in. The Wealthy have won. That’s a fact. Persistence of vision applies to societies as well as to the function of biology. Things appear to be the same, but with just a little effort and research it becomes abundantly clear that what we believe to be true, and what is actually true represents a massive blind spot. This blind spot allows for a great deal of freedom for those who control the resources, the media, and the economy.
They’ve won. But it doesn’t mean the battle is over. We must accept that there is no hope to win if we allow them to choose our weapons.
There will be no change if we continue to accept that their economy is real, and their debt is real. No change will be brought to a plutocracy by asking the elite to relinquish their power through the process of voting, or protesting, or letter writing.
Massive groups converging on Washington and Wall Street, are easily controlled. The powers that be have shown again and again that they are ready, willing, able-even eager- to confront us in this manner. There’s evidence to support the argument that they are, in fact, hoping to provoke us to do it. Their tool- their win.
There are two proven and highly effective paths to nonviolent, meaningful change: Massive boycotts, and massive generalized strikes. These are the tools that belong to us. Let’s use them.
The battle field should not be the seats of power. Rather it should be scattered into skirmishes all around the country, your town, your neighborhood. They can, in an instant, call up any number of police and National Guard to contain and control 10,000 of us in one spot. They simply cannot call up enough police and National Guard to contain and control a hundred of us in ten thousand places at the same time. It’s called taxing security. Understand that concept and use it.
Stop going into debt. Stop paying your mortgage, your rent, your utilities. Force their hand- make them contemplate disenfranchising multiple millions of Americans all at the same time, instead of allowing to attack us one at a time.
Let’s be clear headed about this. It is our willingness to accept that the only way to live is to be in debt. It serves no purpose other than maintaining the status quo.
General strikes and massive boycotts are our tools. We must stop feeding the beast. We must understand that the end game of unbridled capitalism is that a handful of people own everything, while 7 plus billion of us are nothing more than a labor pool, a world of slaves, a resource to be used, exploited or discarded.