Paper Money and Their Emptiness. Debt-based Economics, Financial Recessions, Central Banks, Capitalism, Socialism, Democracy – Is There a Solution to this Gordian Knot?

Capitalism is a financial system that is meant to be an opposite to Socialism, or more like the other way around. Now, it is indeed a bit confusing to say so, since the former is a financial theory, whereas the latter is a political system. Of course, in practice, these two are completely entangled and they can't really exist independently from one another. The financial and the political systems in general, that is.

Socialism is thought to have its roots in the 19th Century and the socio-political theories of the German philosopher Karl Marx. Actually, Marx's philosophy is established as Marxism and is also recognized to be a foundation to Communism. Ever since the Bolshevik revolution and especially the Cold War, Communism is regarded as a totalitarian evil and the very word of it brings about feelings of resentment.

History is a complex topic and certainly not a straighforward one, not to mention that it is shrouded in a lot of myst and propaganda, also historic events too often are distorted through the subjective interpretations of the different view points. So, when one reads history, he or she should always keep in mind that this is the subjective interpretation of a source and that there are other layers and viewpoints to it as well.

Karl Marx and his close like-minded friend Friedrich Engels aspired to a better world, where class-based society with its inequalities would become a thing of the past. They also revolted against the exploitation of the working class by the capitalists and saw religion and religious authorities as equally abusive towards the ignorant believers, in large parts because religion had a long tradition of supporing class-based societies and protecting the "divine rights" of kings and emperors. Their communist philosophy envisioned a society where there will be freedom and equality, higher consciousness, responsibility and solidarity among people. In some part, their philosophy is quite sound, in theory. In practice, however, things turned out to be very different. Just as any other beautiful theory regarding economic and political workings of a society.

In practice, what the Bolsheviks and subsequently the USSR created was a totalitarian rule, which they all labeled as "communism" and also "socialism". I don't quite agree with the interchangeability of these two terms, because of their etymology. Communism comes from community, to commune. This term expresses the core concept of a classless society that Marxism envisioned. While Socialism roots itself from Society, social, with an "ism" attached, meaning "power to the people", as opposed to "power to the kings and rulers". From here on things get complicated and volumous.

On the one hand, humanity simply isn't advanced enough so that we may completely eradicate feudal elements, as in ruling class over a majority of people mass. Such a social form isn't impossible, but it involves a society consisted of individuals of a wholly different level of intellect, culture, behavior and so on. Such a society cannot be created with a social mass of ignorant, selfish, narrow-mined, basic, low cultured and so on and so on "average" people, even less so average peasants (as with the case of the Bolshevik revolution). On the other hand, having the above prerequisite in mind, the Bolshevik's and subsequently all communists never intended to create any such "utopian" society, they simply used people's ignorance, naivete and the "spirit of the era", which was buzzing with worker's being fed up with the old capitalist-feudal order. They exploited the masses to overthrow the monarchy and set up a new monarchy of their own. As George Orwell's satire "Animal Farm" eloquently portrays. Watch an animated adaptation of his book here.

Since the striking contrast between what "Communism" was thought to be like and what it was became obvious, the whole philosophy was condemned as no good. When in reality, there was Leninism, Stalinism and Totalitarianism. What I see as more disturbing is that the term "Socialism", as well as its root Social, went along in the category of highly undesirable things to have. And many people today perceive the term Socialism as somehow related to Dictatorship. A perception readily exploited by other forms of government today, who, more or less, are back to feudal-capitalism-like forms of social order.

In conclusion, communism turned barbaric and totalitarian because The Human Element bares these qualities and infuses them in everything the human element gets involved with, thus distorting beautiful theories into ugly practices. Just like the so called "Democracy" and, of course, "Capitalism" in all of their various forms.

Modern capitalism, promotes private ownership, ideally with no government ownership at all, encourages deregulated trade and production (free market) and is generally against social policies of any kind, like benefits, free (or cheap) health care, pension funds and so on. Democracy is some highly unclear term, that incorporates in itself various "schools of thought", economic and political practices. The average person thinks that Democracy means the right to vote, which is a highly simplistic and ignorant perception, not to mention naïve.

Democracy indeed is based on people's right to choose their government, from the choices they are given, of course. Democracy also means that the government or ruling party must take into account the opinion of the majority of people in the form of referendums and local ballots on different issues, laws and decisions to be made. And, the most important and central element in true Democracy is a predominant Middle Class of educated people who have reasonable income and actively participate with reason, knowledge and sense in those referendums and public debates.

If we look around the "advanced" modern societies it would be difficult to say if the Democratic model is truly the prevailent one. Yes, people have equal rights today, but these rights can be infringed quite often, with or without people's consent. Propaganda and projection of false perceptions are still widely in use by any government today, as well as social engineering and manufacturing consent. Which are political instruments attributed to dictatorships and totalitarian forms of rule, not democracies. In theory, of course. There are barely any referendums on important legislations, laws and decisions that the so called "Democratic" governments make. And, finally, the all-important-middle class is slowly disappearing.

So, in practice, it doesn't really seem like there is true Democracy anywhere. There is capitalism, that promotes a social structure based on a small percentage of super rich and a large portion of poor, a social structure, quite similar to the way feudal societies were. Maybe with the subtle difference that today the peasants are allowed to take bank loans and have the illusion of wealth, for a while. There is still a lot of exploitation in the working place, propaganda and wide-spread ignorance, which is encouraged by the popular culture, because dumb people are simply easier to manipulate.

In the last century, financial crises are the norm, today, the theory, even describes them as "economic cycles", a natural thing, you see. Just as there is life and death in the Universe. And just as natural as it was for communism to turn into a totalitarianism. In case the reader is missing the point, the natural element is the human element.

Financial recessions are created by speculation on the stock exchange and the bank credits. By means of CDSs, Derivatives and other financial instruments in use. In other words, financial recessions are created by human greed, selfishness and irrational desire for more money, much, much more than one can ever spend. But there is more to it all. Central Banks had positioned themselves, well, as central in the economy of all "advanced", and not so advanced societies. Nearly every country today has a privately owned central bank. Central banks issue the printing of money, bank notes, and also regulate economic cycles by manipulating interest rates, currency rates and the quantity of money there are in a given economy.

For instance, when there is inflation (that is too much money units are in use in the economy, so that the worth of the individual note goes down, which in turn raises prices and lowers profits for big corporations) the central banks responds by increasing interest rates. Which supposedly would make people spend less, presuming that they will buy on credit. Or, after a financial recession, the central banks lower interest rates, to lure people into purchasing more (they call it "stimulating the economy"), presuming that the people are stupid enough not to suspect that the low interest rates will not stay low forever. Another "economic stimulus" that the almighty and all-knowing Central Banks utilize is Quantative Easing, that is they print a bunch of cash, usually in the billions, and inject it into the economy, so that it may help ease the tight economic situation.

Here comes a funny thing. There is this "economic phenomenon" called Stagflation. (stagnation + inflation). That is, prices rise a.k.a there is inflation and in the same time there is high unemployment, which presumably means that people aren't spending so much so to create inflation. Wow, what could be causing this *phenomenon* ? Could it be that the central bank is pumping empty cash (not covered by any real value, like commodity, resource, gold, silver, human lives) into the economy, thus diluting the money mass and consequently lowering the value of the individual bank note unit.. ? So that, when the value of a bank note unit goes down, prices go up in order to make up for the lost value.

By the way, the central banks are tricky institutions and they can manipulate the currency values as well. So another phenomenon occurs this way – a national currency that has a higher value than it actually should have. Or a lower one in that matter, depending on the goal of this strategy. So that is how the Federal Reserve, for instance, pumps 600 billion dollars (as in QE) into the dollar notes mass and yet the rate of the US dollar currency had steadily risen in the past few months. Isn't this magic! It is amazing how irrational modern economy can be. Just as the human element behind it.

Watch this highly provocative short documentary. The title is

• The American Dream By The Provocateur Network

So, here is the basic scheme of the Debt-based Economy.

The Federal Reserve, which is a private bank, lends to the US government whatever sum of money (with interest) they need for their political deeds, campaigns, propaganda, ads and so on, government expenditures. The FED calls this "Bond Buying", another deceptive term. If it isn't a deception to say that you are buying something that doesn't exist (yet) with empty papers (printed by the Fractional Reserve System scheme). By now, it is highly doubtful what really is the fraction of this reserve at all – is it 1:9, is 1:90, is it 1:900…?! The most outrageous thing of it all is that if I decide to print some money for myself, the Central Bank will condemn this criminal act as "Counterfeiting". Shocking.

Anyway. In return to the Central Bank's Bond-Buying, the Government signs a contract to repay the loan ( because practically the central bank loans money to the Gvrnmnt ) in time. The way governments repay these loans are, basically, by taxing the populace. The more the government loans money form its central bank, the more it increases the various taxes that the population is obliged to pay. Crazy, isn't it? Very much. And you thought that all these money from taxes went for the collective benefit of building infrastructure, social benefits and so on. Not quite.

Here is another educational documentary that covers the issues in the above short, but in more detail and retrospective. The title is

• The Money Masters (1995)

"Isn't it bewildering how many people just live through their lives, completely oblivious? Worrying about their trivial troubles of love, salary, relationship issues and gossip from around the entertainment industry." (comment in youtube)

I think we should majorly rethink our knowledge of history. Which makes me think again on just how much propaganda and crap is studied in schools and universities. All those young and pumped up with eagerness individuals coming out with their degrees, thinking they understand it all. When they have been simply manipulated, programmed even, to seamlessly pour into the predetermined channels of the social and economic systems. When we need change, change of paradigms. New ways of thinking and new ways of doing. We need revolution, mostly in our minds. People with revolutionary thinking, not social units content with their degrees and knowledge who will continue the old ways over and over again. We need to question the paradigms and make it a cultural norm. Only then true cultural progress and advancement will be achieved.

A true Age of Reason, of harmony, responsibility and collective prosperity in knowledge, science, medicine.. without wars and primitive retardedness. Higher education as common as primary education is today in the world. Higher awareness and deeper consciousness, wisdom and understanding a common acheivement. And no, the world will not end when everything is prosperous and people are advancing intellectually at an increasing pace, we will merely step into an entirely new era of our evolution, that we can't even imagine today.

How long will all this insanity continue in this world, over and over again? How long will people remain stupified, ignorant, narrow minded, short sighted, unaware, blinded and so basic ? What debt?

Since all these money are fictional, then we have a fictional debt to return and we may as well not return it at all! FED what? IMF what? World Bank what?! What are these institutions without people's consent? Nothing.

Two useful links for US citizens:

• The Federal Reserve Act Must be Overturned Petition

• There is No Social Security "Crisis"

"A revolution is easy to start... just pull your money out of the banks, walk away from your debts, buy silver and gold, stop shopping at corporations... buy local. They are dependent on our consent." (comment in youtube)

Financial centralization is bad for this world, as well as meta governments. There is still too much primitive motivation in humans for such institutions to be healthy for social prosperity.

We need a sustainable and stable economy, reusable energy and a politically participatory society with war out of the scene. Oh, and a stable population, very important as well. No outrageous population booms, conscious reproduction, well guided with responsibility towards life and nature. Is it impossible?! Will humanity ever brake the chain of primitivity and truly move forward!? Do we need so much money in order for civilization to prosper? Are old dogmas and paradigms disrupting our cultural advancement? How long will humanity exist? Is the Universe infinite? Where is the quantum boundary between your mind and reality itself?! Is there telepathy?! Does anything exist at all?? What is your mind made of? No, really, what is it made of, beyond the atomic? Huh, what? Quarks?! 

Think outside the box. Open your eyes. (R)EVOLUTION

There is no haram, everything is halal. Discipline precedes freedom. Darkness precedes the light. Death precedes life. Ignorance precedes knowledge. Forget everything you know and learn it a new.

"This is not a doctrine, but an observation of the world. To say that Nothing is True, means that we must be the shepherds of our own civilization. To say that Everything is Permitted means that we are the architects of our own actions and we must bear responsibility for them."
Ezio 

Alexander the Great didn't spend much time in thinking sophisticated ways of solving the Gordian Knot. He just drew his sword and slashed it. I don't know what that means.

Do read this related article in the blog as well:

• The Shock Doctrine

I also recommend that you watch these documentaries, related to the topics discussed above:

• Inside Job (2010)
• Food Inc. (2006)

And these movies:

• Wall Street 2: Money Never Sleeps (2010)
• The Company Men (2010)

The Shock Doctrine. The Barbarism and Primitivism of Deregulated Capitalism

History is an entangled topic. It also is a multi-layered one. Historic events may seem linear with clear cause-and-effect chains at first glance, but beneath there are other layers that shape and influence them.

For one reason or another, canonic history, that is taught in schools and universities is presented in a very one-sided, shallow way, that is incomplete on the least and plain deceiving on the most. Unfortunately, it is history that has been used as one of the major instruments of propaganda and manipulation, by distorting and editing it, so that it suits the ideology and views of governments and regimes.

American history books have been revised more than a dozen times in the last century. And our history, for the Bulgarian people, is a subject of debates, controversies and much uncertanties, as it has also been distorted by manipulative regimes in the past for centuries in a row. History in the span of centuries and millenias back could be a tricky subject to stitch and unearth, for obvious reasons. However, the extent of distortion of the very recent history just shocks the observer.

I am rendered speachless and stunt at the depths of propaganda and manipulation that is infused in our knowledge of events that have occurred just in the last half a century. Every official version is a load of manipulation, everyone is hypocrite, cynicism is the norm and all complex variations of human behavior stemming from the basic instincts are cultural standards even for the most "advanced".

It is a pitty that the present is never able to see itself as incomplete and backwards from the viewpoint of the future. So that is why "advanced societies" throughout history have always thought that they were at the top of cultural perfection and people continue to think like this today.

I want to share a video and the book, that it is based on. The book is titled The Shock Doctrine by Naomi Klein. Here is the official website. It explores the barbarism, cynicism and primitive ways of imposing change to societies.

Change that does not benefit "ordinary" people, but corporations. Change, that presents itself as advanced and freedom-bringing, but in reality, it has a degrading effect and reverts societies back into feudal-like models of highly uneaqually distributed super-rich and super-poor. These are the effects of deregulated capitalism. It is barbaric simply because humans are too primitive still and are unable to regulate themselves rationally. That is why a deregulated "free" market of pure capitalism is a highly unhealthy model that has a highly erosive effect on its host society. As we can very well see this in practice all over the world.

The more I live, the more I realize that this world is guided not only by primitivity, but unbelievable doses of irrationality. Not to mention that the very definition of "sanity" gets more and more doubtful all in regards to the extent of irrationality that world leaders implement in their actions. And actions driven purely out of selfishness are also irrational, because you cannot be selfish in a system that is interdependent and where if one element is unstable, all other elements will suffer from it. And so on. It is a crazy world. Not just playfully crazy, but seriously insane. It can be seriously argued against the current standards of "sanity", as well as the current standard approaches in "curing" "sanity" divergences. It is all business. RX generation, manipulated, abused and stupified.

I highly recommend watching the documentary and the book must be at least twice as good, in terms of an "eye opener" for all those other hidden layers behind the official façade of history. The very recent history. The history of Capitalism and in parts experimental psychology. In this line of thought, as complimentary for yet more layers and perspectives, I recommend watching

• The Century of the Self (2002)
• The Power of Nightmares: The Rise of the Politics of Fear (2004)

Here are two previous articles in this blog, with more videos provoking thought and convention, conventional propaganda that is. Do browse through the "Recent Posts" section on the right side bar for more.

• Freedom or Delusion? The Feudal Elements in Modern Capitalism
• The Invisible Enslavement Of Debt Economics..

And here is the Shock Doctrine documentary:

So, am I the only one who holds the opinion that all these economists, experimental psychologists and dictatorship-training agencies should be declared psychopatic, inhumane and be held accountable for crimes against humanity?

There is Capitalism, Socialism and Democracy. Those three are all beautiful in theory and highly distorted in practice. It seems that neither alone is the best, maybe the best version would be a syncretic one between them all. A Social Democracy with rationally balanced state regulation and free market policy. Rationality and other higher cultural values are missing from the picture so far.

In this barbaric world of freaks and sub-human creatures, filled with lies and hypocricy. Nothing is true, everything is permitted.

Observe. Think. Make your conclusions. Wake up.

Freedom or Delusion? The Feudal Elements in Modern Capitalism. Enslaved by Debt-Based Economics. A Wake Up Call on the Verge of a Revolution and/or Total Collapse

Shilled into Capitalistic ideology. We, modern people, tend to think that Feudalism is a thing of the past. That today in our advanced societies we enjoy freedoms and rights, not accessible to our unfortunate predecessors. Yes, today individuals in modern societies do enjoy new-found freedoms that were unthinkable before. Like gender equality, right to assembly and public protests, freedom to express your opinion, to trade and generally live your life the way you feel like living it. Of course, all those freedoms and rights do come with certain clauses and prepositions attached. The truth is, that all of the above are still emerging and although constitutionally accepted, those rights are not fully applied in practice. They are more or less fictional and formal, even though the average consumer may not see it this way. Perhaps, the biggest illusion in today’s world is that there is a Democracy. When in reality, there is Capitalism, which is the modern form of Feudalism.

History is a complex and entangled topic. But in history are the roots that laid today’s world. Due to a complexity of reasons, USA, with its economic ideology of Capitalistic prosperity and the American Dream, has placed itself as a world standard for social advancement, serving as an example for emerging economies. And despite all of its numerous flaws, a lot of governments do strive to follow in its footsteps, including ours, here in Bulgaria. Which I find a wrong thing to do. Indeed, whether due to a lack of alternatives or because of the short-sightedness of people in power, American Capitalism and US society had established as a world role model. But, hasn't this role model proved to be wrong?

In reality, USA was a land of prosperity and freedom, in the past. Today, it has turned into a highly exploitative system that completely excludes the “social” element and a global military aggressor. United States sits on old glory, because today’s reality is much different than the image they still project onto the world. In fact, USA is the world leader in hypocrisy and cynicism. Reprimanding corrupt foreign governments, when the US government works for corporations, instead for the people. Speaking against terrorism and military aggression, when the US foreign policy is one of the most terror-oriented and aggressive in the world. Talking about Global Warming and environment preservation, when US corporations are some of the major pollutants and destroyers of environment both on US territory and abroad.

Abusing non-renewable resources, as if the end of the world is just around the corner. Producing enormous amounts of waste, both organic and synthetic, that spill into rivers, oceans and all nature. The entire concept of perpetually expanding economic growth is wrong and unsustainable. A virtual economic prosperity, that still remains unexposed, but will not remain like this forever. Why virtual? Because, it is debt-based.

It is a strange thing that USA imports much more, than they export. Yet, Americans can afford a rather higher standard of life on the average. This is a controversy. And this is where the American credit system comes in the scene.

The land of the debt, where the average citizen has 8 credit cards and about a thousand dollars of debt on each one of those plastics. Americans are spending beyond their means and this situation puts American economy ahead of its actual GDP, thus this higher standard of living is somewhat artificially created with a lot of blink. The average American has higher rate of spending, than making money.

There are much unhealthy elements in the way US society ended up being set. Not to mention high rates of obesity, probably highest in the world, and GMO food treated with highly toxic chemicals (produced by Monsanto, the same Monsanto who produced Agent Orange for the Vietnam war) with side effects yet to be established, such as endocrine disruptive ones, both for humans and animals alike.

It may seem a great thing to be American, but is this only the façade? Behind the glamour there are shady mechanisms at work. Liberty, it seems, has been lost somewhere on the way.

Americans, today, are enslaved by corporations and banks. Banks lure people in taking credits with overwhelming advertisements, great offers and discounts, counting on the average person’s ignorance. Terms and clauses are intentionally complicated and written so that contracts be as less clear to the consumer as possible. Government, on the other hand, makes sure it keeps propaganda up, motivating society to be good consumers. However, the average American doesn’t make enough money to be that good a consumer, that is why they need to spend on credit, in order to fulfill the consumer-quota required from them. Modern consumerism, on the whole, is based on deception and misleading. A legalized fraud. Unfortunately, this model propagates itself overseas as well. For instance, here in Bulgaria, six years ago there were no mortgage credits, there were no credit advertisements on TV and on street banners. And today, already there are lots and lots of people in debt, caught in the spider web of banks and debt economics.

Banks use various strategies to keep their customers well in debt. They gladly would refinance your mortgage, so that you may fail to pay it off this time. They would even reprimand you, if you pay off your credit too fast. They don’t like you when you pay on time, thus avoiding interest. Ideally, banks want you to make minimal monthly payments forever. And, don’t worry, you can always go bankrupt and balance out your credit bills.

While, I’m not sure if all that bank credit system is such a bad thing after all. Since, if there were no credits available to the average working individual, the whole consumer-based society wouldn’t be possible. Not at these rates at least. But, what about the social side-effects of this aggressive Capitalism? What about the continuing and growing trends of inhumane practices of corporations, like sweatshops and death salaries? And what about the complete lack of care about the environment? What about taking responsibility for future generations yet unborn? What legacy are “we” leaving to them? A shattered and poisoned world? Why sustainable economy and renewable production is kept only in theory? Why are corporations waiting for the last drop of oil to dry out, in order to really invest in those new technologies? Greed is a great barrier to social advancement. Among other primitive behavioral patterns of human beings.

What about the growing inequality between rich and poor? Is the middle class diminishing? Where will that lead? Isn’t it time to officially declare Capitalism a mistake and move forward? Or is it that people must change their mindset first, in order that we move forward.

The presumption of constantly expanding economy is just irrational, not to mention unsustainable, and it will inevitably turn into a black hole, crushing down under its own weight

In one speech of his, J.W.Bush says that “Americans enjoy economic independence” Wow, I was truly stunned by this outlandish conclusion, what’s more, the sitting crowds in front of him actually clapped their hands joyfully. Amazing. It is amazing how much appreciation empty words can bring about. Of course, manipulative governments all around the world knew that effect long ago Bush was even born.

Title: Maxed Out

I do agree that people's own ignorance and lack of rational thought is the main reason to find themselves in such debt-overwhelmed situations. The banks having lied and deceived them into taking the bait is another element, but not really the main one. I mean, do live within your means people or at least close to it. Time to realize that the American Dream is not wealth that simply falls from the sky, it's about opportunities to earn. However, such opportunities are to be found all over the world today, so it's an old concept overall. And what about Liberty?

It is a strange thing that there are a lot of movies, articles and analyses over the past decades raising those issues and yet as if all of them are somehow kept on the background, shut and silenced with very little public attention drawn to them, like some kind of dissidents that are unfavorable to the ruling government, because, well, they are too objective and speak the truth. Preposterous.  Here is another documentary related to Freedom and Liberty in USA that I recommend watching, some of the regulations that it criticizes are truly disturbing. Like the ban on growing vegetable in your back yard. I mean, this is a fundamental human right to grow food on Earth, banned. Crazy world. 

Title: The End of Liberty (2010)

You can watch it here. 

And another one, examining this transition in a historical restrospection and embarking on quite a provoking trip in search of answers from some of the most notorious US institutions. Nearly a century later.. US society still walks oblivious to all this. Watch the following documentary, it is highly recommended and spread the word. Stand up and fight, for your freedom, for your rights!

Title: America: From Freedom to Fascism (2006) 


What we see in the above documentary is just gruesome. It is shocking and deeply, deeply disturbing. So ridiculous when people say that "USA is the freest country." Umh, think again. This sounds like the "Americans enjoy economic independence" line of Bush's. Utter and complete hot air words with absolutely no resonance in reality. Yeah, the truth is that Liberty in United States died at the beginning of the 20^th Century and it is up to people now to resurrect it back. Say no to self-imposed ignorance! Informed and intelligent is cool. Dumbness is dull (not to mention highly manipulative). Wake up people.

• A Personal Revelation on the IRS from Sherry Peel Jackson
• Wake Up. It's time for the FED to go, USA and the world will gradually settle to be a much better place after those highly exploitative institutions are abolished from society 
• Here's what happened with the abovementioned whistleblower, because she was not backed by society! US Society = the flock of IRS and the FED.
• Abolish the Federal Reserve Act of 1913. Sign the Petition

Title: Stupidity (2003)    

"Anyone who believes that exponential growth can go on forever in a finite world is either a mad man or an economist" Kenneth Boulding