Jan 13, 2011

The Unsustainability of Today's Capitalism and the Imminent Collapse of Debt-Based Economics. Is this the only possible way?

In the previous episode, the topic of the feudal elements in modern capitalism and the enslavement by central banks cartels was discussed, alongside other problematic areas like "Is liberty dead in USA?". Is it time to officially retire the Statue of Liberty? And replace it with a huge advertisement of, say, Bank of America or a big banner flashing "The IRS wants YOU".

The most obvious difference between civilization today and civilization one thousand years ago is technology and mass production. There are certain other subtle differences among more advanced societies, like heightened sense of moral and ethics, better individual self-control, education at large, more rational understanding, respect for life and equal rights between men and women. However, it is not rare when such seemingly higher culture turns out to be only a public façade, with people behind it being as primitive as their predecessors a millennium ago. For instance, the cases with pedophile professors and politicians, people who should represent the highest of cultural and intellectual standards in society. Not to mention the still persisting differences in salaries for men and women in certain professions and positions. A pitiful situation indeed. As Carl Jung sadly remarks:

"Even those who serve as teachers and leaders in modern societies are slaves to their unconscious drives and primitive motivators"

That is, apart from cultural advancement, modern society lacks public recognition for the need of mental advancement and raising social standards in this respect, as well. However the pressing importance of this topic, among others, I'll turn attention to another serious issue in our global society that needs to be recognized sooner, nevertheless. It is the topic of the strange workings of debt-based economics and feudal ways of capitalism, their effects on society, the political deception and propaganda in these respects and the overall unsustainability of this model that will lead to very serious social unrests in the foreseeable future.

Capitalism is at the core of current economic systems around the world, more or less barbaric. The barbarism in capitalism is in the abusive ways corporations work, both towards the environment and workers, all to increase profits and decrease expenditures. The highly unjust distribution of money leads to social tension, all because human greed has no rational limitations. And what is this money? Means of exchange. What are those papers that we use to trade and exchange our labor for? Increasingly, just paper. Does the world need so many of them papers, in order to develop and prosper? I don't think so.

Paper money, once, had a value denominated in Gold or Silver hard matter. The more gold a country had, the more money it could produce. However, the Fractional Reserve system of central banks increasingly depletes paper money of any actual value, so that a paper note is worth just another paper note of the same denomination. Nothing really, that is. It is an extremely weird situation and the bee hive, of sort, of such empty papers is, you might have guessed it, United States of America. The last financial recession began from there and spread around the world. This is because central banks are interconnected, global trade and also because the US dollar has been enforced, or more like deceptively negotiated, to be a main reserve currency to many countries around the world. And also is one of the main reasons why the US dollar still is able to maintain a certain value. Considering the artificial ways of financial growth that the US Federal Reserve has been applying in the past 80 years and more.

The Fractional Reserve Requirement in the past, has been guided by some rational regulations. For instance, you can issue 9 fictional dollars covered on 1 real one, that is covered on, say a gold coin. Today, regulations are increasingly being removed, declared as evil and enemies to pure capitalism.

So, if we take this correlation and apply it to the US economy, one can say that the real productivity is 10% and the rest 90% are debt?! This means, that this debt can never be repaid and financial crises will only grow deeper and more severe. How can we have severe financial crisis based on virtual money?! What will happen if all those money are simply deleted, burned, destroyed away from circulation? ...

So, money turn out to be some kind of fictional value exchange notes. In the past, a paper bill represented the value, say in gold and silver, of a physical asset the paper holder had. But today, a bill virtually represents nothing. The wildest thing is that in the 16th Century, when the Fractional Reserve system began, and forward, European trade developed on virtually empty notes that had no real asset cover. And that development boomed and flourished. The inevitable conclusion here is that the world doesn't really need all those paper money in order to develop its markets and production. So weird, it is amazing. It is amazing how banks can give you "real" money that you can actually spend for whatever in exchange of some signed paper check, for instance. Such a twisted scheme. lol I have to say that banking is some kind of magic. Making money out of nothing. Brilliant. The dream of every alchemist from the past.

US banking system and that of many other countries in the world turns out to be mostly Debt-based. Everybody owns money to someone else and that someone else owns money to yet someone else else and so on. The USA was indeed a land of freedom originally (if we don't take into account the genocide of the local population), however with the creation of the US Federal Reserve in 1913 this freedom began to loose its grounds. And why is the US Fed Res labeled as "Federal" anyway, when it is a private bank that lends money to the US government, rather than being owned by the US govrnmnt?

It's all a big show, a game of deceit and deception. It's pretty huge, pretty serious and really awesome to behold. How easy it is to manipulate large masses of otherwise normal, not mentally retarded, even intelligent individuals. And indeed this is the strangest thing. How and why people let themselves be manipulated?

The financial crisis involving lots of people loosing their homes that took place in 2008 was well known and discussed by dissident economists way back in 1995. I recall in one particular documentary "The Money Masters" made in 1995 where some of the interviewees warn of this upcoming crisis in plain, direct speech. Of course, the common people never take interest in such boring documentaries and prefer to switch to American Idol or some idiotic reality show. So, it is their own ignorance that led them to loosing their homes, their bad. Continue to be sheep-minded, oh mighty common people, until you get ripped off completely, so that you may finally wake up from your intellectual slumber.

If you ask an average American about the Federal Reserve, they will be quite unable to tell you anything about it. They think it is federal and that this federal bank actually helps American economy. And the main stream media assures that this perception is sustained in the way they serve news. For example, here is a recent news title "The Fed not backing down on bond buying" as if this is something very positive and even sacrificial that the FED does in order to help, you see. When in reality, this is just a financial scheme to ensure long-term profits, for the FED, and long-term financial burden for the average American.

The Founding Fathers are rolling in their graves. It is not a lie to say that American people have given up their constitution and their Liberty with it. Most of them just don't realize it yet. This moment of realization will surely come though.

There are so many controversies in the United States, so many secrets, cover ups and unanswered questions, I simply can't believe that American society is so tranquil, so tranquilized. They must be putting some sort of sedative in the water supply (or else, the average American person IQ really is around 80). And the US shouldn't name their political system "Democracy", it's something else, but not Democracy.

This entire financial system is very wrong and unsustainable. It will turn into a black hole at some point, this is inevitable. And who's to blame?

Ordinary, working-class people, in the end, are the ultimate victims of capitalism. They have been cleverly deceived into taking those sub-prime mortgages on the one hand, but on the other hand, all those people have fallen victims to their own ignorance. Their own financial ignorance and naivity. They didn't read the fine script and didn't really thought in perspective, like "How much will I have to pay when the initial low-rate period ends?" that has been confusingly specified somewhere in between that fine script.
So, there are two sides in this problem - the big banker's deception and wall street risk-takers' greed and on the other side all those consumers' personal ignorance and lack of sober thought on just how much they can actually afford. Thus, everybody is guilty, everyone in their own way. 

In the end, capitalism may be a very positive idea on theory, but on practice, just as every other bright idea, is twisted by the primitive ways of the human element. It's human's, and in particular, men's irrationality in their instinctive drive to dominate, that destabilizes the whole system.

So, is the current version of Capitalism and Democracy the only possible frames for societies? There are actually some economists who think these two are in a way "the end of the line" as in the best possible solutions. Right, just the average human narrow-mindedness speaking, I'll say. Human is such a strange creature - a bag of hardwired instincts and yet a dynamic consciousness. Intelligent and yet dull, a shallow intelligence that is the current educational standard. And so on.

Who knows what the future will bring. It may as well be a big huge asteroid putting an end to human misery, lol.