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The Perversion of Capitalism: A Credit-Based Versus Capital-Based System
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The Perversion of Capitalism: A Credit-Based Versus Capital-Based System
Ideologies are mind-killers, all of them, because they are all (severely) flawed. The ideological labels which are so frequently parroted in our societies are terminology which has lost all meaning. This begins with the fact that our political/economic ideologies are not practical blueprints for creating and managing economies (and societies).
These ultra-popular buzzwords are the theoretical models of philosophers. With philosophy (and philosophers) now banished to the lowest rung in the world of academia, how can the work of philosophers be regarded as the (supposed) epitome of political and economic wisdom, in these same societies?
The other reason why these political/economic buzzwords do much more to confuse than enlighten comes from the fact that most of the people who bandy about these terms have little-to-no idea of what these theoretical models actually represent. Nothing illustrates this principle better than the grossly-abused buzzword “capitalism”.
As always, sound analysis begins with definition of terms. What is “capitalism”?
a) Capitalism is competition.
b) Capitalism is free markets.
c) Capitalism is a system of equal (economic) opportunity, an inevitable byproduct of having free markets and competition.
What do we see in our own, supposedly “capitalist” systems?
We see the opposite of competition. We see economies which have been almost entirely carved-up into the domains of a handful of mega-oligopolies.
We see the opposite of free markets. We see markets where a single, financial crime syndicate marches these markets (collectively) higher and lower, like some gigantic, synchronized yo-yo. Bubble and crash. Bubble and crash. Every eight years.
We see the opposite of equal opportunity. We see an economic system where the deck is ridiculously stacked in favor of engorging the oligopolies still further, and throttling small business and the individual entrepreneur.
In real capitalist systems, oligopolies (and monopolies) are the Ultimate Evil, and we have very strong laws in all our regimes, to prevent these economic abominations from ever coming into existence. In our pseudo-capitalist perversion, these corrupt governments have simply refused to continue to enforce these laws. Instead, our traitor regimes worship the oligopolies (and the Oligarchs who hide behind these corporate fronts). “Too big to fail” has become the mantra of all.
In real capitalist systems, there is no such thing as too-big-to-fail, only too big to exist. Corrupt and/or insolvent entities are supposed to be put to death, as the sole mechanism for purging malinvestment, and restoring economic health to that system.
Japan is the proof of this principle (and proof of our own perversion of it), in reverse. A quarter century of “too big to fail” has brought nothing but perpetual economic stagnation, and skyrocketing debt. Western economies reinforced that proof, by copying Japan’s failure, and copying Japan’s consequences: skyrocketing debt and perpetual stagnation (at best).
As a matter of simple arithmetic, nations with skyrocketing national debts must implode into debt default. As a matter of simple arithmetic: nations with skyrocketing debt and stagnant economies must implode much, much sooner.
How perverted has the term “capitalism” become? How meaningless? As noted in a recent commentary, we have two economic models which are both (universally) described as “capitalist”. Yet not only are these models different (entrepreneurial capitalism and neo-feudalist capitalism) they are opposite to each other. As a matter of elementary logic, no concept, model or system can be its own opposite.
However, there is an even more-fundamental perversion of our pseudo-capitalist system. It is a principle so fundamental that by itself it is responsible for the cancerous, parasitic rot, in our once-thriving/once-prosperous societies.
“Capitalism”, as the word directly implies is a system of capital. Why do we hail those successful (crooked?) enough to accumulate wealth (i.e. capital)? Because in any/every real capitalist system, these entrepreneurs invest this wealth directly, back into the system. We rarely see this, in our pseudo-capitalist perversion.
What we have instead, openly acknowledged by the bankers, politicians, and media drones alike is “a credit-based system”. Why is a credit-based system a perversion of a capital-based system (i.e. real capitalism)? In one word: interest.
Real capitalism, where the wealthy invest their wealth (i.e. capital) directly into the system, is a clean system. Every penny of that capital goes directly into generating new economic growth, new jobs, new wealth, and more prosperity. But what we have instead is a grossly inferior, totally parasitic, and hopelessly unsustainable version of this model: creditism.
In creditism (as opposed to capitalism), wealth is not invested directly into the economy. Rather, it is loaned into the economy, and thus virtually every penny of actual investment is encumbered by useless, parasitic debt.
As a matter of simple arithmetic, we can predict what must result from any government foolish enough to adopt inferior/parasitic/unsustainable creditism, rather than adhering (more or less) to the principles of true capitalism. All such economies must end up drowning in debt. Every increment of investment means an increase in debt, and thus an increase in (parasitic) interest payments, compounded, in perpetuity. The result is obvious to anyone with sufficient intellectual firepower to operate a calculator.
Look around us, and what do we see? We see Lemming Regimes, proving this elementary principle, perpetuating the same, failed system (creditism) which – as a matter of simple arithmetic – must result in our complete economic destruction. Total suicide.
The epitome of his insanity, perversion, and suicide is the surreal melodrama known as “the Greek crisis”. What do we see here? We see an economy which everyone agrees is bankrupt. And what do the “creditors” of this economy (the ECB, EU, and IMF) demand that Greece agree to? Taking on much more debt.
Here the arithmetic descends to the level of fingers-and-toes. A bankrupt entity – by definition – cannot afford to continue to service its present debts, at all, period. Obviously (using one’s fingers and toes) it’s easy to “calculate” that such an entity cannot possibly take on even one more penny of additional debt.
In this perverted, pseudo-capitalism which we can only call “creditism”, the solution to bankruptcy is more debt. Total suicide. Absolute insanity.
What does (real) capitalism preach? The solution to insolvency is always (without exception, ever) to “restructure the debt”. Here we can divide insolvency into two categories: those where it is necessary/desirable for the insolvent entity to continue its existence, and those where it is necessary/desirable for the entities to be liquidated (i.e. the “too big to fail” Big Banks).
Where it is necessary/desirable for the entity to continue its existence (as is the case with any sovereign nation), capitalism dictates that the “restructuring” reduce the debt-level down to (clearly) manageable proportions – without exception, ever.
What have we seen Greece’s (new) government insisting upon, as it attempts to negotiate with the insane, corrupt “Troika”? It wants its debts reduced to manageable (i.e. post-Austerity) proportions. For this, the corporate media has relentlessly and unequivocally labeled Greece’s government as being “radical, left-wing”.
Greece’s negotiating position is the only negotiating position for any rational/reasonable entity, in any (real) capitalist system. The Corporate media characterizes Greece’s capitalist proposal as being “radical, left-wing”. This can only mean, in the insane perversion of creditism, that true capitalism itself (competition, free markets, equal opportunity) is now equated as being “radical, left-wing”.
In such a world of institutionalized insanity, it behooves us all to cease to use the ideological buzzword “capitalism”. As has been clearly demonstrated, this word is now nothing more than a perverted euphemism used by corrupt Liars – to attempt to deceive the brainwashed masses into accepting (and even endorsing) policies which are the antithesis of everything that our economies and societies used to represent.
Say “no” to the perversion and propagandizing of the term capitalism. Instead, demand that our corrupt governments openly acknowledge our creditist system (in honest, non-euphemistic language) for what this really is: parasitic, cannibalistic, suicidal, insanity.
The Perversion of Capitalism: A Credit-Based Versus Capital-Based System
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The article above was another example of superficially being correct, while more deeply being profoundly wrong, due to only engaging in a superficial analysis.
"Capitalism" makes the most sense when it is regarded as being consistent with human beings and civilizations as entropic pumps of energy flows. However, "capitalism" can include enforcing frauds, within the ways that general energy systems may operate. Indeed, the existing systems are what exists after one adds fraud and murder to "capitalism."
The deeper levels of the problems we face are the degree to which the dominant natural languages and philosophy of science are manifestations of the biggest bullies' bullshit being the most dominate social stories. It is almost impossible to exaggerate the degree to which the dominance of the biggest bullies' bullshit world view has resulted in civilization becoming a Bizarro Mirror World, or Wonderland Matrix, where everything appears to be proportionately backwards and absurd.
The article above proposes the primary definitions that:
CAPITALISM IS COMPETITION IN FREE MARKETS.
However, that approach does not allow for the nature and history of warfare, which was the de facto free market in murder. People who promote the impossible ideals that there should be "free markets" tend to never address the deeper issues regarding the de facto free market in murder, which was the history of warfare, which is what created civilization as we know it.
In general, I totally agreed with the article above, on the superficial level upon which it presented its arguments. However, it continues to indulge too much in dualities, taking the form of old-fashioned false fundamental dichotomies, and the related impossible ideals. On the contrary, if one is serious about regarding human beings and civilizations as general energy systems, then, since there is only one energy, there is only one system, and that mostly matches the principles and methods of organized crime. There is nothing but the dynamic equilibria between different systems of organized lies operating robberies. Politics should be about those dynamic equilibria. However, the best organized criminals have become so totally dominant and triumphant that the established systems have become extremely unbalanced, and are automatically getting worse, faster ...
Tragically, as another comment above already pointed out, WE HAVE ALREADY GONE PAST THE EVENT HORIZON INTO A SOCIAL BLACK HOLE. The established public "money" system is based on governments enforcing frauds by privately controlled banks, while around those banks have grown up corporations which are runaway systems of legalized lies, backed by legalized violence. In theory, a democratic republic, operating through the rule of law, was supposed to be able to protect and preserve "free markets." However, the crazy corruption of the public "money" supply has already run amok, to a degree that is about 99%, or a ratio of maybe a residual unit of actual free market economics, inside of a context of a hundred units of enforced frauds.
The article above correctly stated that:
I REPEAT, genuine capitalism ought to be regarded in ways which are consistent with human beings and civilizations operating as entropic pumps of energy flows. HOWEVER, in order to do that, one has to recognize that the biggest bullies' bullshit also was able to dominate the scientific enterprise, the same as all other social institutions, and thereby, the philosophy of science has been seriously compromised. In particular, the concept of entropy had its meaning inverted, by arbitrary minus signs being inserted into the entropy equations of thermodynamics and information theory. The mathematical physics itself was telling us that all measurements of power and information have relatively negative values, not relatively positive values. However, that insight was deliberately reversed, so that inversion could remain consistent with the biggest bullies' bullshit world view.
There are no ways to prevent full bore "capitalism" from including the de facto free market in murder. That is how and why governments became the biggest form of organized crime, controlled by the best organized gangs of criminals, which currently happen to be the international bankers, who control the "credit" system, that is legally able to make "money" out of nothing as debts, in order to "pay" for strip-mining the planet's natural resources. Most people who promote that there should be capitalist free markets are able to get away with never discussing how the death control systems are actually supposed to work. Rather, they tend to rely upon the transcendental poetry of magical words and phrases. Plato's Republic raised the question: "Who will guard the guardians?" The answer is nobody, and nobody has ever been able to come up with a better answer. As we are now reaching some limits of diminishing returns in the ability to continue to strip-mine the planet at an exponential rate, those limits are starting to show up first and foremost through the fundamentally fraudulent financial accounting systems that enabled that strip-mining to be previously conducted in the ways that it was. Therefore, we are running into some real limits of the social pyramid systems, and therefore, more and more political pressures are building, while our political systems have become like pressure cookers with their safety valves welded shut!
The theory of a democratic republic operating through the rule of law was supposed to be that We the People would guard the guardians. However, after the public "money" supply was captured by the best organized gangs of criminals applying the methods of organized crime through the political process, the People more and more became incompetent political idiots, or Zombie Sheeple, while the funding of the political processes automatically became more unbalanced, until it is now almost inconceivably crazy and corrupt. I WISH that I could recommend some constructive actions, however, WE HAVE ALREADY GONE PAST THE EVENT HORIZON INTO A SOCIAL BLACK HOLE. The monetary system has become like a totally metastasizing cancer, that is killing the society that it is growing in, and that has reached the point where any possible treatment would precipitate killing the patient, as Temerity Trader also pointed out in his comment above. Indeed, as far as I can tell, it is practically a waste of time to bother to learn about these issues, because the only thing that happens is that the more one learns, the worse it gets. There are no politically possible solutions within the established systems, where the vicious spirals of the money through the political processes are automatically getting worse, faster ... despite that enforcing frauds becoming increasingly psychotic overall, since that enforcement never stops those frauds from still being false.
Theoretically speaking, it continues to be the case that a democratic republic operating through the rule of law would be the best way to better balance the dynamic equilibria between the different systems of organized lies operating robberies. However, the degree to which the public "money" supply has been privatized is already about 99%, and therefore, the degree to which "citizens" have become Zombie Sheeple is also about 99%. Given those social facts, the most probable futures are for the public murder systems to also become more and more privatized. The existing debt slavery systems have generated numbers which have become debt insanities, and those are going to provoke death insanities, because the death controls were always backed up by the death controls, because money is measurement backed by murder, as the most abstract form of private property being claims backed by coercions.
The "ironies" that exist now are that governments have chartered banks, and other corporations, which entities became systems of organized lies operating robberies, and the symbolic robbery through frauds, which grew to become orders of magnitude bigger than the government itself. "We the People" have about 99% defaulted to allow public powers to rob, and to kill to back up that robbery, to become effectively controlled by corporations, which grew up around those banking corporations that gained control over issuing the public "money" supply. Since the vast majority of "We the People" have become incompetent political idiots, or Zombie Sheeple, at an exponentially accelerating rate, in proportion to the degree that the public "money" supply was privatized, there no longer appears to be any politically possible ways to pull out of the vicious spirals of debt insanities headed towards death insanities, because of the ways that the privatization of the public "money" supply will be followed by the effective privatization of the public murder systems.
Tragically, it is practically impossible to communicate with enough of the Zombie Sheeple enough of the radical truths: Everyone has some power to rob, with the most extreme form of that being the power to kill. Governments assembled and channeled that power to rob and kill (which governments called "taxation" and "enforcing the rule of law.") However, the best organized gangs of criminals were able to persistently apply the methods of organized crime through the political processes, in ways which resulted in the public powers to rob and to kill becoming effectively privatized. That has already been more than 99% accomplished, as demonstrated by the degree to which the public "money" supplies have been privatized almost totally, everywhere in the world, so that governments enforce the frauds of privately controlled banks, and then, in turn that flow of "money" controls all of the other corporations that grew up around those banks being able to issue the public "money" supply as "credits" which are anti-capital, like how anti-matter annihilates matter, that kind of "credit" is "negative capital" which annihilates "capitalism."
As far as I can tell, it is impossible to maintain any reasonable hopes for the foreseeable future. The vast majority of people already always act like incompetent political idiots, and have been doing so more and more, for generation after generation, due to them gradually adapting to live inside of systems of legalized lies, backed by legalized violence, wherein their own personal successfulness depended upon them operating INSIDE ENFORCED FRAUDS, since the entire political economy had become based upon those ENFORCED FRAUDS. The currently existing situation is that the vast majority of people have already become Zombie Sheeple, who are being fleeced to exhaustion, while being set up to be slaughtered.
The currently existing systems of perverted, pseudo-capitalism which we can only call “creditism,” are due to the history of organized crime, which made states, and controlled what those states actually did. The intense paradoxes are that human beings and civilizations already operate as entropic pumps of energy flows, however, due to the history of successful warfare being based upon backing up deceits with destruction, and successful finance being based on enforcing frauds, our society deliberately misunderstands everything as much at it possibly can, because our society has become almost totally dominated by the biggest bullies' bullshit, which is as backwards and absurd as it can possibly be, since its social successfulness is based upon the social pyramid systems being based on the maximum possible deceits and frauds.
Ironically, that is completely consistent with a deeper appreciation of capitalism, and free markets, because it includes the de facto free markets in murder and fraud, which operated as entropic pumps of energy flows. It would be theoretically possible to reconcile capitalism with general energy systems. (Of course, there would also be some revolutionary convergences of concepts within that context.) We currently have fundamentally fraudulent financial accounting systems. HOWEVER, those do NOT actually violate the laws of nature. Rather, the only connection between human laws and natural laws is the ability to back up lies with violence.
Basically, the biggest bullies' bullshit world view was promoted by them, and by their controlled opposition groups, in order that almost everyone else would misunderstand everything in the most backward and absurd ways possible. The runaway social successfulness from doing that has resulted in the vast majority of "We the People" becoming reduced to being Zombie Sheeple. That has run amok so much, for so long, that I can not imagine any politically possible ways to pull out of that vicious spiral, after we have already gone beyond the event horizon of that social black hole. The established monetary systems are already almost inconceivably crazy and corrupt, and they continue to automatically get worse, faster. However, those monetary systems also already control most people's lives, and as well as control the political processes.
The only dim hope that I can irrationally hold on to, at the present time, is that after the runaway debt insanities provoke enough death insanities, perhaps enough of the Zombie Sheeple will start thinking enough to understand how and why that happened. However, they would have to suffer through very severe cognitive dissonance, in order to go through the looking glass of our Bizarro Mirror World, in order to understand that almost everything that they were taught to believe in was the biggest bullies' bullshit, and that almost all of the apparent public "opposition" groups to those bullies were being controlled by those bullies, who were primarily the international banksters.
The Zombie Sheeple have more and more been taught to understand everything in the most backward and absurd ways possible. The degree to which the biggest bullies' bullshit dominated the natural languages and philosophy of science makes thinking and communicating about our political problems extremely problematic, and almost politically impossible. Another case in point was the article about, which was superficially quite correct regarding that there now EXISTS "The Perversion of Capitalism: A Credit-Based Versus Capital-Based System." However, that kind of article does not get remotely close to going through the deeper layers of analysis of how organized crime operates as "capitalism," through the history of the de facto free market in fraud and murder. Without that deeper analysis, then there can not be any better resolutions of the real problems. Instead, there continues to only be relatively superficial analysis, which then results in still promoting relatively superficial, bogus, "solutions."
Ideally, enough of the Zombie Sheeple would become more competent citizens. However, at the present time, that appears to be practically impossible, since what exists now is almost nothing but a core of organized crime, surrounded by controlled opposition groups. The article above actually defaults to still being an expression of controlled opposition, in the following sense, as was expressed previously on Zero Hedge by Cognitive Dissonance:
"The absolute best controlled opposition is
one that doesn't know they are controlled."
The article above does NOT fully understand that "our political/economic ideologies ARE ... practical blueprints for creating and managing economies (and societies)" in the sense that our civilization is controlled by the best available professional liars and immaculate hypocrites, which operate the existing systems of organized lies and robbery, through the maximum possible deceits and frauds, because that was what worked best throughout previous human history. The intense paradoxes that would have to be embraced in order to develop better practical blueprints for creating and managing economies (and societies) are that those would necessarily have to be based upon better death control systems, to back up better death control systems.
The superficial analysis presented in the article above does not address the deeper issues that capitalist free markets included the history of murder and fraud, and indeed, that was how and why our current political economy is based upon enforced frauds. The superficial analysis in the article above does not address how and why governments are necessarily the biggest forms of organized crime, controlled by the best organized gangs of criminals. The only ways that the extremely unbalanced systems that exist now might become better balanced is if enough of the Zombie Sheeple could become more competent citizens. However, that seems to be political impossible for many different reasons, not the least of which is that almost all of the public opposition is controlled, so that their bogus "solutions" are to recommend that everyone should become better Sheeple.
On the contrary, I return to the SOURCE which is that everyone lives as an entropic pump of energy flows. Everyone lives through some systems of organized lies operating robberies. Everyone has some power to rob, and power to kill to back that up. Those are the collective powers of "We the People," that were supposed to be channeled through a democratic republic's rule of law, but instead, ended up becoming almost totally privatized, so that the established systems of debt slavery have become debt insanities, which are headed towards provoking death insanities. The article above was CORRECT that the kind of public "money" supply that exists now is credit-based. In that context, I REPEAT: "In this structure, credit, presented as a pure element called "currency," has the appearance of capital, but is in effect negative capital." THAT "NEGATIVE CAPITAL" ANNIHILATES "CAPITALISM," SINCE "CAPITAL" IS BEING CREATED OUT OF NOTHING AS "CREDIT."
However, the reasons how and why that is happening are due to the bigger picture, that full bore "capitalism" included the de facto free market in frauds and murders, whereby the biggest gangsters, the banksters, were able to apply the methods of organized crime through the political processes, in ways which became worsening vicious spirals, whereby the successful politicians became the banksters' puppets, which were voted for by enough of the masses of muppets, that had been brainwashed to believe in bullshit for their whole lives, by the public schools and the mass media.
HOWEVER, it does NO good to regard those political problems by continuing to rely upon the dualities of false fundamental dichotomies and the related impossible ideals, which were originally the biggest bullies' bullshit world view, which they were able to control their opposition to also promote. I REPEAT, the ways that we think, due to the language we use to communicate, are as backward and absurd as they can possibly be! We should be understanding human beings and civilizations as general energy systems, in ways which are consistent with how we understand other energy systems. However, we are currently understanding the concept of entropy in totally inverted ways, and therefore, can not properly understand human beings and civilizations as entropic pumps of energy.
To understand "capitalism" one has to understand entropic pumps of energy. However, our civilization has paradoxically developed to do that in the most backward and absurd ways possible, as demonstrated by the degree to which governments have become the biggest forms of organized crime, controlled by the best organized gangs of criminals, while the vast majority of the population have simultaneously become Zombie Sheeple. The essential intense political paradoxes are as I have outlined above. There is only one energy, and so, there is only one political system, which mostly matches the principles and methods of organized crime.
It is a dead end to stay within the superficial analysis of "The Perversion of Capitalism." It is necessary to engage in a deeper analysis of capitalism, so that it becomes consistent with entropic energy pumping. However, in order to do that requires series of intellectual scientific revolutions, such as correcting the error that inverted the meaning of entropy, and then, following through to include the de facto free markets in murder and frauds, which were always aspects of the real world, and therefore, economics was always a subset of warfare. The essential problems we face are that there has been progress in physical science, while almost nothing like that in political science, because such progress in political science would take profound paradigm shifts that incorporated and surpassed the paradigm shifts that have already been achieved in physical science.
There now EXISTS globalized electronic monkey money frauds, backed by the threat of force from apes with atomic bombs. Therefore, "The Perversion of Capitalism" has been amplified to astronomical sizes, which are many orders of magnitude greater than the article above referred to! The intense political paradoxes are being driven by some human beings better understanding general energy systems, but that not being applied to better understand human energy systems. In my view, as qualified above, "capitalism and free markets" are the basic systems which are most consistent with perceiving human beings and civilizations as general energy systems engaged in entropic pumping of energy flows. However, evolution sometimes goes through more revolutionary events. At the present time, there is nothing within the established systems which can prevent their own excessive success through enforcing frauds causing their own mad self-destruction.
Our civilization is being controlled by organized crime, in ways whereby those criminals are almost totally getting away with that, to the degree that our civilization is manifesting runaway criminal insanities. Since being able to back up lies with violence never stops those lies from still being false, the initial social successfulness of a political economy based on enforced frauds becomes more psychotically out of touch with relatively objective facts, the more socially successful those vicious spirals of enforcing frauds become. The intense paradoxes are that the only things which actually exist are the dynamic equilibria between different systems of organized lies operating robberies, or the symbolic robberies through frauds being enforced. Due to the degree that the vast majority of "We the People" have become Zombie Sheeple, due to the degree to which there is almost nothing else than controlled opposition surrounding the core of organized crime, the established systems are RUNAWAY "Perversion of Capitalism," which are extremely unbalanced, and automatically becoming more unbalanced. However, since the vast majority of people, in both the ruling classes, as well as those who are ruled over, continue to think using dualities, instead of start using more unitary mechanisms, we can not apply better understanding of human beings and civilizations as energy systems to our political problems. Rather, our politics continues to be dominated by old-fashioned religions and ideologies, which continue to promote their bogus moralities based false fundamental dichotomies and impossible ideals, which continue to backfire badly, and make the opposite happen in the real world, because, after all, they are controlled opposition, which were designed to do that.
Ironically, that is what the article above is still doing, which is even more ironic to the degree that it partially recognizes that: "Ideologies are mind-killers, all of them, because they are all (severely) flawed."
Great article. Short and sweet. I'm so fucking sick of hearing "capitialism does not work". Thanks for posting this Tylers.
In all honesty, this is an excellent and well written piece.
What we have here is not Capitalism, its Corporatism.
It started out as an honest attempt at Capitalism but was hyjacked by the banksters early on and turned into Corporatism to buy out competition and maximize profits for Big Banks.
It's Corporate Socialism. Cartel, Monopolistic, Anti-Competitive, Internationalist, Racketeering, Corporate Socialism.
Invented by Benito Mussolini to save Internationalism for Communism (and for which he was highly praised and rewarded by the likes of Lenin and the Russian Communist Party), Corporate Socialism is Mussolini's defintion of Fascism.
It's "belly laugh" funny, that the "left" despise it so much, due to it being mislabeled as "Capitalism".
As Mussolini confirmed to many people, and in his own words: “Fascism is the same thing as Communism” (one of those he confirmed it to, was Alfred Bingham, in 1931).
Get real. We have already crossed the event horizon. Without more and more debt, it ALL comes crashing down. Keep rates near zero, extend loan terms, loose credit to anyone who can fog a mirror. Just try to get the unwashed masses to go for “austerity”. The ONLY way out is lose-lose. Decades of pain are coming no matter which path is taken. If millions lose faith in the Fed, if they quit borrowing and buying crap, it all burns down. If the oligarchs keep everyone as debt slaves, it all burns down anyway, just a little further down the road. Kick the can is all they have. All the western nations are Greece. People want it all, they have learned (thank E. Bernays) buy anything and everything, pay later. They deserve it, no need to work, use Master Card then walk away…bankers cry and get bailed out.
There is not one argument that shows a way back from this…once crossed, no return is possible. Liquidation of the excesses means millions more unemployed as the highly-leveraged banks all fail. The Lexuses, SUVs and Teslas all go back to the repo man to be sold off for pennies. The wealthy buy up all the distressed assets. The people riot and burn the cities down.
The bankers and oligarchs know all this, but delay and pray is it…throw them crumbs…give them EBT cards and new I-Toys…the lemmings remain peaceful.
A currency always has the problem that there must be a source and a sink, and there are only 3 basic types - (1) commodity based, (2) seigniorage based, and (3) credit based. In #1, currency is something nature creates and must be dug out of the ground and formed into coin. In #2 it is issued by the national treasury ex nihlo. In #3 (our current system) it is loaned into existence by banks ex nihlo, under the supervision of a government authority.
#1 works, but governments are severely constrained from overspending. #2 works, but only if the government can exert fiscal self-control over time and maintain high taxes as the return path to extinguish excess currency. #3 works very well for a while, then deteriorates as debt and interest accumulates over time.
It is easy to see why the world has gone to #3. Governments want to overspend, governments and voters cannot exert fiscal self control and always demand more benefits, and a system that works well for decades while kicking most problems into the future is very attractive.
creditism...
It's one thing to have a nation starting out using other nation's coin to conduct business as the fledgling US did with physical Spanish bits of eight and other sovereign coinage, but to have reserve currency status in today’s world based on “trust” when the organization demanding such trust to be placed in it refuses to be audited and furthermore requires that it and it alone be responsible for the life and death decision of setting interest rate policy is another definition of suicidal insanity.
These bankers without borders need to be eradicated from every sovereign nation they have malignantly metastasized themselves into before any soldier (or drone) is ever allowed to cross out of their own country. Absent that, armed conflict will continue to be nothing more than simple theft and murder.
Jmo.
Amen Sprott
I've been referring to this as 'Deficitism', but creditism works just as well
"Credit" is the latin for "he believes". Ironic that fiat currency would be based on nothing more than consumer confidence. And the word "confidence" derives from the latin word...
oh, never mind.
Try getting rid of advertising first.
People get on the bandwagon of capitalism and debt because they were taught to want, want, want, the shit they never needed.
Without advertising being cynically used to constantly stimulate and amplify incessant neurotic psychological want, no one would want it.
the central bankers ability to asset-strip a country in the 21st century using computers with ones and zeros beats the snot out of any military asset-stripping project in history.
in the absence of a military presence, it will be interesting to see how long they can keep at it however
cynically used to constantly stimulate and amplify incessant neurotic psychological want...
I thought that was the definition and purpose for having non-stop presidential / political campaigns and electioneering.
Time for a new 4th of July holiday Golden Jackass interview on TFMR
Turd and the Jackass for 1.5 hours...what could possibly go wrong? haha :-)
It's on the house, so if ya wanna kill some time and hear Jim Willie's thoughts on the geo-political and economic collapse underway as we speak, there here's the link:
http://www.tfmetalsreport.com/podcast/6968/jackass-our-own-yankee-doodle-dandy
Enjoy this 4th of July, folks. Think about what it means and what it stands for. The future of freedom not just in America but the rest of the world hasn't been in this much jeopardy since WWII. The new threats to freedom and liberty are hitting us from all angles. Get prepared. By this time next year the scumbags in charge will be banning the 4th of July just as they're banning everything else and driving us into another world war situation.
This is article is so poorly written, contradictory, and evasive that it cannot even be considered as good trolling.
The disdain for philosophy is the result of the indoctrination system embracing Plato instead of embracing Aristotle (and necessarily gravitating to education).
Here is some flavor of The Philosopher. How does it taste?
From http://genius.com/artists/Aristotle
"Aristotle is the founder of Logic. His six lectures (Categories, Interpretation, Prior Analytics, Posterior Analytics, Topics, and Sophistical Refutations) assimilated together are his identification of this thinking tool that he invented. Aristotle, by way of his invention and teaching of Logic, is solely responsible for lifting the western world out of the Dark Ages and ushering in the Renaissance.
Aristotle is the first Founder of the United States of America. It is from his lecture on Nichomachean Ethics that the Declaration of Independence takes its phrase and guiding principle, “life, liberty, and the pursuit of happiness.” He then integrates this principle into his lecture on Politics. Therefore, he identified that the best ethics begets the best politics, that what is good for the individual comes first and then that information determines of what good is a government. This, along with his observations that the most successful constitutions have always been the ones which are constructed in a manner to nurture and protect a large middle class, is why the framers of the United States constitution constructed it as they did.
Aristotle is the founder of metaphysics. Metaphysics is the study of being qua being, or it could also be called ‘what is the nature of existence and how do I know it?’ He nor any of his peers or predecessors called this study metaphysics. This term was applied to the name of his lecture centuries later. Although some of the topics in metaphysics had been questioned and discussed for centuries prior to Aristotle, he was the first to successfully systematize the discussion in its totality and to correctly answer the questions without any contradictions, i.e., logically. Aristotle referred to what modern scholars call Metaphysics as First Philosophy. His First Philosophy is what the Inquisition was all about. For half of the 13th century, the University of Paris by way of the local Bishops and later by the Pope’s orders prohibited the teaching of Metaphysics at the university. Proving that the universe was eternal because it could not have come to be ex-nihilo was viewed as heretical.
Aristotle’s First Philosophy is the successful rebuttal and denial of Plato’s Theory of the Forms. The difference between Plato and Aristotle’s metaphysics is also the difference in their ethics and politics. Plato starts with the Forms, universals, and claims that because they exist in some supernatural place that they are first and they are the reason why our knowledge of particulars comes to exist at all. Aristotle starts with what is natural, the particulars, and teaches that we then proceed to induce the universals from our sense perceptions of the particulars. For Plato, reality is ex-nihilo. For Aristotle, reality is axiomatic. In Raphael’s painting of School of Athens, he has Plato pointing upwards to out of this world and Aristotle rejecting this notion by gesturing his hand firmly down to this world: https://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rj...
Similarly, Plato starts with attempting to define the perfect state and says that that goodness then determines the role of the individual in the state. Aristotle starts with defining the perfection of the individual and says that that goodness then determines the role of the state around the individual.
Aristotle is the founder of the factual concept of money. In Nichomachean Ethics, part V, section V, he defines that money was invented for the purpose of equalizing the value of disproportionate work. It is from this definition that we identify that money is the representation of productive work. It is from this identification that we can observe that modern fractional reserve economic systems are not monetary systems but instead they are counterfeiting systems. It is because of the counterfeiting systems that modern societies repeatedly suffer economic “crises.”
Aristotle was the founder of the factual concept of art. He was the first to identify that the purpose of art is not to show the outer appearance of a thing but instead to show its inner significance.
Aristotle, founder of logic, bringer of the scientific method, luminescence for the Renaissance, Rebel fuel against the Inquisition, intellectual ammunition for the Declaration of Independence, executive consultant for the United States constitution, founder of the factual concept of money, and founder of the factual concept of art was known by many epithets throughout the ages such as The Philosopher, The Teacher, and The Master of Them That Know. I call him the One in the many.
He was a good man." http://genius.com/artists/Aristotle