Want To Understand Rising Wealth Inequality? Look At Debt & Interest

Tyler Durden's picture

Authored by Charles Hugh-Smith via OfTwoMinds blog,

"Governments cannot reduce their debt or deficits and central banks cannot taper. Equally, they cannot perpetually borrow exponentially more. This one last bubble cannot end (but it must)."

I often refer to debt serfdom, the servitude debt enforces on borrowers. The mechanism of this servitude is interest, and today I turn to two knowledgeable correspondents for explanations of the consequences of interest.

Correspondent D.L.J. explains how debt/interest is the underlying engine of rising income/wealth disparity:

Here is a table of the growth rate of the GDP.

 

If we use $16T as the approximate GDP and a growth rate of, say, 3.5%, the total of goods and services would increase one year to the next by about $500B.

 

Meanwhile, referencing the Grandfather national debt chart with the USDebtClock data, the annual interest bill is $3 trillion ($2.7 trillion year-to-date).

 

In other words, those receiving interest are getting 5-6 times more than the increase in gross economic activity.

 

Using your oft-referenced Pareto Principle, about 80% of the population are net payers of interest while the other 20% are net receivers of interest.

 

Also, keep in mind that one does not have to have an outstanding loan to be a net payer of interest. As I attempted to earlier convey, whenever one buys a product that any part of its production was involving the cost of interest, the final product price included that interest cost. The purchase of that product had the interest cost paid by the purchaser.

 

Again using the Pareto concept, of the 20% who receive net interest, it can be further divided 80/20 to imply that 4% receive most (64%?) of the interest. This very fact can explain why/how the system (as it stands) produces a widening between the haves and the so-called 'have nots'.

In other words, the wealthy own interest-yielding assets and the rest of us owe interest on debt.

Longtime correspondent Harun I. explains that the serfdom imposed by debt and interest is not merely financial servitude--it is political serfdom as well:

As both of us have stated, you can create all of the money you want, however, production of real things cannot be accomplished with a keystroke.

 

Then there is the issue of liberty. Each Federal Reserve Note is a liability of the Fed and gives the bearer the right but not the obligation to purchase — whatever the Fed deems appropriate. How much one can purchase keeps changing base on a theory-driven experiment that has never worked. Since the Fed is nothing more than an agent of the Central State, the ability to control what the wages of its workers will purchase, is a dangerous power for any government.

 

If a Federal Reserve Note is a liability of the central bank, then what is the asset? The only possible answer is the nations productivity. So, in essence, an agent of the government, the central bank, most of which are privately owned (ownership is cloaked in secrecy) owns the entire productive output of free and democratic nation-states.

 

People who speak of liberty and democracy in such a system only delude themselves.

 

Then there is the solution, default. That only resolves the books, the liability of human needs remain. Bankruptcy does not resolve the residue of social misery and suffering left behind for the masses who became dependent on lofty promises (debt). These promises (debts) were based on theories that have reappeared throughout human history under different guises but have never worked.

 

More debt will not resolve debt. The individual’s liberty is nonexistent if he does not own his labor. A people should consider carefully the viability (arithmetical consequences) of borrowing, at interest, to consume their own production. The asset of our labor cannot simultaneously be a liability we owe to ourselves at interest.

Thank you, D.L.J. and Harun. Is there an alternative to the present system of debt serfdom and rising inequality? Yes, there is, one I describe in my book A Radically Beneficial World: Automation, Technology & Creating Jobs for All. But is an alternative system possible? Not in our Financialized, Neofeudal-Neocolonial Rentier Economy; but this doesn't mean the status quo is permanent. As Harun noted in another email, "Governments cannot reduce their debt or deficits and central banks cannot taper. Equally, they cannot perpetually borrow exponentially more. This one last bubble cannot end (but it must)."

Correspondent J.F. recently submitted a helpful way of conceptualizing $1 trillion: One million seconds ago was eleven days ago. One billion seconds ago was 1982. One trillion seconds ago was 30,000 BC.

Here is federal debt, topping $20 trillion and soaring to the moon:

What we're really discussing is what will replace the current system after it self-destructs.

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LawsofPhysics's picture

Ask the average 'merican, they will tell you that "math is hard"...

Fuck 'em!

"Full Faith and Credit"

roddcarlson's picture

"Using your oft-referenced Pareto Principle, about 80% are net payers of interest while the other 20% are net receivers of interest."

I think it goes 20% of the population pays 80% of the interest.
20% of the population receives 80% of the interest income.
Therefore you might conclude that 20% is paying the other 20% 80% of interest, which isn't totally true either as there could be other expenses between the collection and distribution of interest.  But that would leave 60% somewhere in with the other 20% interest being distrbuted between lenders and borrowers.
But you wouldn't conclude that 20% is collecting and the other 80% is receiving. You can't take a 20-80 rule as a zero sum outcome.  Also the 20-80 rule doesn't tell you how much a debt per capita the population is living versus per capita income.  That is what we really want to know from articles like this is if you took a Pareto Principle distribution of wealth that we expect the 20% to have 80% of the weath, but how far up the pareto principle distribution does it goes up until the debt versus income = 0 (water line of misery on the pyramid distribution, well actually it's not pyramid either).  Another way to say this is how much debt versus real money in circulation as claims to that money in debt then take this as a Pareto distribution.  So I like Charles Hughes on this but the 20-80 he uses isn't quite right in my opinion. 

Also we should know the weath distrubtion is Pareto distributed, and the debt distrbution is Pareto distributed.  The correlation between these as a coupling factor or as coefficient (which is actual money versus debt ratio/which should national ) that would really tell us how much those things correlate and thus how miserable people live trying to pay back nonexistent money.  I suppose another way to know this correlation between the Pareto distrbution of weath and the Pareto distribution of debt would be if one could know the fractional reserve money multiplier for all banks in the entire economy/country.    The higher this money multiplier across the nation the more disturbing the lifestyle.

roddcarlson's picture

The fallacy of Charles on his 20-80 is that he concludes that if 20% are collecting 80% of the interest, that must mean 80% of the other people are in debt.  Not true at all!  The correlation between debt and wealth are two separtate things, like I said you'd be better trying to figure out the real money multipier across the nations entire financial industry to know how debt and wealth correlated on a national scale.  But even that would be hard to determine a misery index because even if there is alot of claims on the wealth in debt notes, the psychology of expectation of money supply increase could also have an effect.  That is if there is a bigger sucker willing to take on more debt while your generation pays and retires your debt the money multiplier might be high but that the money in circulation keeps increasing  as larger national multiplier with a bigger sucker wouldn't make you totally miserable.  It would make you miserable when the national money multiplier started to drop as your debt  remained large and the outstanding debt being HUGE!  Then you'd be feeling the pain trying to compete to work for the dollars in circulation to repay yoru debt.   So really I guess we could easily say both debt and wealth are Pareto distributed, but evne that doesn't tell us the misery index after all.  Creditism really does suck for this reason as MISERY isn't straight forwardly defined by our models.

roddcarlson's picture

So I realized that I made the same mistake as Charles there is no 60% for the other 20% in interest payments.  Here's how the 20-80 rule would resolve.  20% would receive 80% of the interest payments.  Another 80% of people would receive the remaing 20% of interest payments.  Then by the same Gaussian distribution we woud would expect that a totally different sample set of people (not the same 20% - 80% grouping so uncorrelated to each other im % grouping), that 20% of those people would be paying 80% of the interest payment and 80% of the rest of the population would be paying the remaining 20% of interest payments.  So I made the same mistake suggesting that you can group the gaussian distribution of those making payments and those receiving payments of the interest under the same Gaussian.  It's not true, as you could in effect have the same person making payments to himself in interest.  Also the whole thing of people receiving interest payment gets kind of weird when you get government involved who can do the lending like it does with banking laws. In this case not just anyone is allowed to do fractional reserve to his neighbors.  So we reduce our gaussian distribution maybe to big banks when we talk the receivers of banks gaussian distribution.  What happens in an economy where the number of banks gets reduced to the point say to big to fail banks by government?  Then there wouldnt be enough banks to form a reasonable sample set of distribution, the gaussian distribution that makes Pareto true may no longer be accurate prediction.  Also since banks are reloaning the same money out multiply times but also allowing the people to deposit the money multiple times and claim ownership of the same money in fractional reserving, then we enter another problem of distributions.   We'd expect the number of depositors to roughly equal the number of lenders to the same contested money that is over leveraged.  But that isn't entirely true either, as a big corporate environment and government involved might encourage corporations over say individuals in the merchantilistic environment.  In that case a few corporations may be the more the receivers or depositors versus a whole lot of people.  In other words when you allow mobs or grouplings of people to equal a single unit then the gaussian distribution might not work (I'm guessing on this one) as the weighting of more versus a singe person in the scheme kind of changes who is in the distribution.  Again you have to keep each distribution separate.  Whether you are talking interest payed or interest received.  You can't say that if 20% is receiving 80% of interest the other 80% are making that payment to the 20% as you have then inferred that the distribution and collection of interest are the same exact people over the same exact Gaussian distribution.  Two the governmetn allowing weighting unit of changes of groups of people versus single depsoitors and the ability of these people both to get loans and make money in a contrived market kind of changes the weighing where the typical Gaussian distribution may no longer hold due to the weighting of samples.  It's very complicated when you talk statistics or Pareto, but you would have to always assume that each distrbution for each question is it's own and you cannot mix and match two Paretos and say it the same people sets.

roddcarlson's picture

Also to be honest thae misery index might be high when the money supply goes into contraction as a national money multiplier starts to drop (derivative of this over time being negative).  But that misery is only the debtor.  The misery index for the saver should go the other way around unless the bank has a holiday (laughs).  What I'm saying is that it's pointless trying to figure out who is miserable or note with the debt or loans.  Kind of reminds me of that old saying. "Neither lender nor borrower be".  I suppose I see the genius of what the bible was trying to achieve in Jubilee.  For many years I thought that Jubilee would just reward the big debtor, until I realized that we regular debt forgiveness about one lifetime that it would actualy inhibit the lender from lending too much of his money that he couldn't collect back in a reasonable time.  This meant that usury would be limited not by the borrower but by the lender.  It was a great way I would think if followed through a clockwise basis of debt forgiveness to keep usury to manageable levels while building real wealth.

meta-trader's picture

you can add an extra 1500/USD week after week in your income just working on the internet for a couple of hours each day... check this link... http://bit.ly/2jdTzrM

Vic Odd's picture

I'm making over 60 billion dollars a month out of thin air working part time as a private central bank!!!!

 

 I kept hearing other people tell me how much money they can print at central banks so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do..

 

-Print government mandated legal tender notes to buy interest bearing bonds from sovereign countries!

 

-Wait until the interest on those loans can not be paid off by Governments unless they incur more debt, which I happily issue to increase my cumulative interest rates!

 

-Wait until there is blood in the streets and print more so I can lend them at NIRP to my proxy holding companies and buy real assets such as water rights, minerals, precious metals and real estate for pennies on the dollar!

 

In short, I can turn paper into real assets because I am the only one mandated by government to do so!

 

ww.screwthegoyim.con

VWAndy's picture

 Its not that the math is hard. Its that they dont like the answers.

Mr 9x19's picture

remember the exponential demonstation of the stadium fulled with water drop ?

 

"Imagine a magic pipette. It is magic because every drop of water that comes out of it will double in size every minute. So the first minute there is one drop, the second minute there are two drops, the third minute four drops, the fourth minute eight drops and so on… This is an example of exponential growth. Now, imagine a normal sized football stadium. In this stadium you are sitting on the seat at the very top of the stadium, with the best overview of the whole stadium. To make things more interesting, imagine the stadium is completely water-tight and that you cannot move from your seat. The first drop from the magic pipette is dropped right in the middle of the field, at 12pm. Here's the question: Remembering that this drop grows exponentially by doubling in size every minute, how much time do you have to free yourself from the seat and leave the stadium before the water reaches your seat at the very top? Think about it for a moment. Is it hours, days, weeks, months?

The answer: You have exactly until 12:49pm. It takes this tiny magic drop less than 50 minutes to fill a whole football stadium with water. This is impressive! But it gets better: At what time do you think the football stadium is still 93% empty? Take a guess.

The answer: At 12:45pm. So, you sit and watch the drop growing, and after 45 minutes all you see is the playing field covered with water. And then, within four more minutes, the water fills the whole stadium. This means that you think you are safe because it seems that you have plenty of time left, whereas due to the exponential growth you really have to take immediate action if you want to have any chance of getting out of this situation."

VWAndy's picture

 Wanna see some good video on exponents?  Japan tsunami footage is exponents in real time.

11b40's picture

I used to explain how the compounding of our pension/profit sharing plan worked to employess this way:

Would you rather have $1 Million given to you, or a penney that doubled every day for 1 month?

http://mathforum.org/dr.math/faq/faq.doubling.pennies.html

 

Gold Dog's picture

Same deal using the rule of 72 at 7%.

Half of the wealth you die with comes in the last decade of your life.

Don't step on Granny's air hose!!!

VWAndy's picture

 Im ok with barter. Because I am a producer.

SidSays's picture

Doing what it's designed to do.

It's all part of the Agenda.

SidSays's picture

Woe, woe, woe...

Everywhere there is woe...

Babylonian Woe by David Astle

jm's picture

When everybody gets richer, wealth inequality isn't an issue.  Hence the problem today.

 

techpriest's picture

I used to think that, but in the US people are still unhappy while by both international and historical standards we are fantastically rich. "Global middle class" is $10k per year for household income - the US average is 4 times that.

IMO, I think the unhappiness comes from poor city design (work always seems to need a long commute, nothing is walkable, etc.), and from the TV programming that shows a couple earning $50k per year living in a house fit for someone earning $80k.

After this, the schools telling you that even though your dad lost his job after 25 years in an industry, you shouldn't bother learning how to self-teach (because you will need it to survive), but go to college one time and get a job with the expectation that you will get 30 years of work and a pension. It's like schools are stuck in the 50s.

Then when it's all failing and you feel isolated (due again to poor city design and TV), the politicians come out and blame it on whoever the enemy of the day is, and talk about how you "deserve" the lifestyle the TV is promising you.

Step outside of the noise, and it really is like stepping out of the Matrix. Stress goes down, and even people mocking you for not driving a nicer car just rolls right off you like water off a duck.

coast1's picture

My apologies for going off topic, but we all do now and then I suppose...I havnt checkd Alexa before, it shows website traffic...Did you know that zerohedge beats infowars?  crazy.   The sad part is, the MSM websites are actually doing very well...Its sad, but if Alexa is true, it seems most people still read MSM...no wonder the world is so fucked up...It comes from the dumbing down of America/World, thru television, the indoctrination system they call education etc....All that gives me hope, is reading how few people supported the 1776 revolution, and they still won....Zerohedge should start taking their website popularity more seriously, and not get big headed etc. and work harder to bring out the best, and even take suggestions from readers, there are many here who post, who I have great respect for...viva zerohedge!!!

TradingTroll's picture

Sure. Where's Tyler? No Tyler no Fight Club. MIA for months now.

BennyBoy's picture

 

ZeroHedge site ranking from Alexa:

Global Rank 

1,523 

 

Rank in United States 

607  

ZH is making a lot of money from all these crap ads I block

mm

NAV's picture

Don’t panic; Here are the ratings for the first quarter of 2017; and this is out of a U.S. population of 322,762,018. Also, it's the quality of the viewership that counts most.

Variety.com : March 28, 2017

Fox News [Bill O'Reilly was its #1 draw] finished far and above its competition in the ratings for the first quarter of 2017

“Fox News averaged 1.72 million total day viewers, with 359,000 of those falling in the key adults 25-54 demo. CNN finished second with 826,000 total day viewers and 266,000 viewers in the demo. MSNBC came in third with 781,000 total day viewers and 185,000 viewers in the demo. Yet despite finishing third, MSNBC definitely has reason to celebrate. The network grew its viewership by 55 percent in total day viewers and 40 percent in the key demo compared to quarter one of 2016, no doubt boosted in part thanks to a surge in the ratings of ‘The Rachel Maddow Show.’…

Fox News also finished number one in both primetime and daytime measures. In primetime, the network averaged 2.89 million viewers for the quarter, with 588,000 of those in the key demo. CNN was third in primetime viewers with 1.19 million viewers, but second in the demo with 411,000. MSNBC came in second in primetime viewers with 1.46 million million viewers and third in the demo with 347,000. In the daytime measure, Fox News averaged 1.99 million viewers, with 388,000 in the demo. CNN was second with 896,000 viewers and 253,000 in the demo. MSNBC finished third with 737,000 viewers and 147,000 in the demo.

http://variety.com/2017/tv/news/cable-news-ratings-fox-news-msnbc-1202017940/

VWAndy's picture

 Is it wealth inequality or just theft inequality thats got so many ticked off. Waaa my piece of the stolen pie aint as big and tasty as I expected! Waaa!

Seasmoke's picture

What part of Debt Jubilee do these motherfuckers not understand ???? Reset Now !!!!

SidSays's picture

Reset Now???

Collapse or Bust....

...then war..

..and...

The chattle will never know what hit'm...

RozKo's picture

Reset for me but not for thee...

Personnel debt will never be forgiven, it will turn into something else, this is all apart of the plan.. 

RedKlaxon's picture

Actually an Interest Jubilee may be a better approach. Most Debt is compounded interest anyway.

An Interest Jubilee would wipe out most Debt instantly.

techpriest's picture

In other words, the wealthy own interest-yielding assets and the rest of us owe interest on debt.

So knowing this, why would you do that? Why would teachers teach kids to do that? Why do cities go into debt and end up in a situation where they see the police as wealth extractors to manage their burgeoning debt?

Actually, there is a "why," which we should all break free from. I call it the "snare of compare." The other neighbor has a nicer car, or his kid goes to a nicer school. Maybe his wife is coming home with more Victoria's Secret bags.

The other city has prettier parks or an "innovative" program that is actually a retread of mid-20th century progressivism.

The other company's HR department has a similar retread program but their director gets to speak at the self-congratulating conference, etc. etc.

And this is why your company is handing over to the insurance company 3x what you are taking out in claims, your city is using cops and eminent domain to stay afloat, you are running up the credit card, etc. Personally, I have to come to reject that nonsense and I respect the guy whose house looks like a junkyard (but whatever you need, he has one), or the company that does its own insurance, etc.

Hail Spode's picture

It turns out that God is a lot smarter than most people give Him credit for these days. The Mosaic law established a system where Israelites were banned from charging each other interest and every fifty years there was a debt jubilee. Anyone here think our present modern system is any smarter or more just?

techpriest's picture

Before people run in and ranting about "the joos," I think there is something to this. Also, the setting of interest rates by a central bank - every depression/recession/panic can be tied back to a mis-pricing of debt and risk, leading to too many people becoming over-extended.

Also, at a moral level, debt allows the irresponsible to look successful. The guy playing with credit cards and the guy who is building wealth debt-free have very different views of the future, and a great deal of morality comes from a solid respect for how your actions today affect you tomorrow.

OpenThePodBayDoorHAL's picture

The pathetic and hilarious part is that the debt overlords do not even realize that Jubilee would be a much better outcome for them as well. Better a 50% haircut than all four prongs of a pitchfork through the abdomen.

11b40's picture

Fake it 'til you make it!

withglee's picture

I often refer to debt serfdom, the servitude debt enforces on borrowers. The mechanism of this servitude is interest,

That's because you're clueless about what money provably  and obviously is, always has been, and always will be:

Money is an in-process promise to complete a trade over time and space. It is only created by traders (like you and me); it is destroyed on delivery as promised; and in the case of DEFAULT, is recovered by INTEREST collection of like amount and destroyed. This guarantees perpetual perfect balance of the money itself ... and thus guarantees perpetual zero inflation of the money itself ... a necessary attribute of anything pretending to be money.

The operative relation is: INFLATION = DEFAULT - INTEREST - zero.

I don't know who you're doing your "often referring" to ... but you're clearly doing them a disservice. I trust your not being paid for that disservice.

Anonymous_Beneficiary's picture

I think you're conflating money with credit.

I didn't see any allowance for fraud in your equation, either.

withglee's picture

I think you're conflating money with credit.

No I'm not. And I make no mention of credit ... and have no need to. Credit is a con brought to you by the money changers.

I didn't see any allowance for fraud in your equation, either.

Look again. DEFAULTs are immediately met by INTEREST collections of like amount.  Where is the opening for fraud. One thing I did explicity say but is crucial to the "proper" process is zero anonymity of the trader creating the money ... and complete visibility of the promise the process has certified by all traders everywhere ... in real time. That's the only redeeming quality of Bitcoin ... the block-chain concept allows open sharing of the ledger.

Iconoclast421's picture

It wasnt "sustainable" 10 years ago, and it isnt "sustainable" now. Yet it keeps going up! So is there a point to pointing out its unsustainability?

Snout the First's picture

"Those who understand interest collect it. Those who do not understand interest pay it"

. . . _ _ _ . . .'s picture

A debt jubilee would only serve to keep the present system in place. History would repeat.

Wanna take the guns out of drugs? Legalize them.

Wanna take inequality out of the economy? Remove money from the system.

ABOLI$H

Sudden Debt's picture

Most Americans are high on weed and every available drugs they can get their hands on.

They think that bad things can't get worse... but it will... a lot even.

delmar Jackson's picture

Wealth inequality declined beginning in the 1920s when we had a reduction or close to a moratorium  in the massive wave of immigration and inequality began widening again after the 1965 immigration act opened the floodgates of immigration again. I am not saying massive immigration is the cause of inequality, but it is a factor.

JailBanksters's picture

Inequality in society is now so rampant it's off the scale.

You will always have Inequality when you can loan money that doesn't exist.

The Rich get Richer and the Poor get Poorer, I don't think this will even be resolved

even after the next disaster. It will simply be re-booted with the same people doing

exactly the same things again.

 

Blankfuck's picture

The Fed Reserve Fuckers and their clan like it this way.They are pure evil loaded with greed. They blinded themselves for what they do to others.  Lets face it, these fuckers print the money to manipulate the middle class and poor. The bankers like Goldman are out for blood and pure greed. These evil fuckers live big and fat. One day they will pay

Tic tock's picture

Maybe not a wise move, to go from Debt Servitude to Unicorn ltd. financial inclusion overnight. There are imbalanced books, a lack of market-priced risk instruments, and two billion people about to join the Labour market. Be that as it may, I can't see why shuffling these liabilities against individuals citizenship (bank-held) bond-accounts, in total, and later used to fund government borrowing - paying the interest from the State to the people, couldn't, with all the optimism of fresh start, not be a part of a new financial architecture ?

AE911Truth's picture

After a great deal of turmoil, we may have a nice future.

 

https://youtu.be/iwubPWt_lrE?t=3032

 

guidoamm's picture

I find it aberrant that nobody is discussing the elephant in the room.

Wealth inequality is built into the monetary system trhough an arithmetical transfer.

When you accept money in exchange for work, you are exchanging something you own outritght for something you do not own and owe interest on.

From the legal point of view, this type of money belongs to the Federal Reserve. Hence, it is merely lent to you for temporary use.

Since government runs a perpetual fiscal deficit, the money received in exchange for labor is also perpetually devalued.

In exchanging your time, skills and idea for money therefore, you are ALWAYS at an asymmetrical purchasing power disadvantage.

In this system, the owner of the currency will, eventually, divest society of wealth and property.

This is an arithmetical truism.

Why nobody talks about it is beyond me. Yet, it is simple.

Our monetary system is equivalent to playing Monopoly with the owner of the factory that produces the game and that always reserves for itself the privilege to:

Be the bank

Receive continuous supplies of notes from the factory floor 

You can't win.

In this system, your only option for long term survival is to somehow get closer to the owner of the currency. Either though merger and acquisition or as a purveryor of services to the entities that gravitate around the owner of the currency

Other than that, debt slavery is an arithmetical certainty

 

guidoamm's picture

I find it aberrant that nobody is discussing the elephant in the room.

Wealth inequality is built into the monetary system trhough an arithmetical transfer.

When you accept money in exchange for work, you are exchanging something you own outritght for something you do not own and owe interest on.

From the legal point of view, this type of money belongs to the Federal Reserve. Hence, it is merely lent to you for temporary use.

Since government runs a perpetual fiscal deficit, the money received in exchange for labor is also perpetually devalued.

Also, since government runs perpetual fiscal deficits, the fiscal burden can only increase through ever more complex legislation and ever heavier fiscal demands.

In exchanging your time, skills and ideas for money therefore, you are ALWAYS AND PERPETUALLY at an asymmetrical purchasing power disadvantage.

In this system, the owner of the currency will, eventually, divest society of wealth and property.

This is an arithmetical truism.

Why nobody talks about it is beyond me. Yet, it is simple.

Our monetary system is equivalent to playing Monopoly with the owner of the factory that produces the game and that always reserves for itself the privilege to:

Be the bank

Receive continuous supplies of notes from the factory floor

You can't win.

In this system, your only option for long term survival is to somehow get closer to the owner of the currency. Either though merger and acquisition or as a purveryor of services to the entities that gravitate around the owner of the currency

Other than that, debt slavery is an arithmetical certainty

Burticus's picture

"The few who understand the system will either be so interested in its profits or be so dependent upon its favours that there will be no opposition from that class, while on the other hand, the great body of people, mentally incapable of comprehending the tremendous advantage that capital derives from the system, will bear its burdens without complaint, and perhaps without even suspecting that the system is inimical to their interests." - Rothschild Brothers of London

decentralisedscrutinizer's picture

 

It’s becoming obvious that our worst economic and political problems revolve around the global hegemony of corporate cartels headquartered in the US, where their military force resides. The only effective way, now, to regain our sovereignty as citizens of a constitutional republic is to severely curtail the activities of such corporations. To remain a free nation, we have to stop granting corporate charters to every con artist that comes along and start demanding a well-defined social value in return. The "Divine Right Of Kings” should not apply to fictitious entities just because they are “Too Big To Fail”. We can't take the incorporation of private transnational banks for granted anymore. The government must be held responsible to human voters, not fictitious entities.

 

 

 

An omission in the US Constitution created the swamp of corporate corruption we now see surrounding our capital. It is a swamp that can't be drained at this point because the Constitution doesn’t provide a legal drain. This 28th amendment is intended to provide that drain so Congress can legally pull its plug. As a matter of political practicality we must rely on the Article 5 Constitutional Convention for which the electorate will need prior consensus to avoid preemptive state or corporate interference. This is what it will take, in plain language, to save the world; and nobody gets hurt:

 

 

 

28th Amendment

 

Corporations are not persons in any sense of the word and shall be granted only those rights and privileges that Congress deems necessary for the well-being of the People. Congress shall provide legislation defining the terms and conditions of corporate charters according to their purpose; which shall include, but are not limited to:

 

1, prohibitions against any corporation;

 

a, owning another corporation,

 

b, becoming economically indispensable or monopolistic, or

 

c, otherwise distorting the general economy;

 

2, prohibitions against any form of interference in the affairs of;

 

a, government,

 

b, education, or

 

c, news media, and

 

3, provisions for;

 

a, the auditing of standardized, current, and transparent account books, and

 

b, the establishment of a state and municipal-owned banking system

 

c, civil and criminal penalties to be suffered by corporate executives for violation of the terms of a corporate charter.

 

 

 

The Founders had to fight a bloody Revolutionary War to win our right to incorporate as a nation – the USA. But then, for whatever reason, our Founders granted the greediest businessmen among them unrestricted corporate charters with enough potential capital & power to compete with the individual States, smaller sovereign nations, and eventually to buy out the Federal government itself. Now that these fictitious entities own the USA and command its military infrastructure by virtue of the Federal Reserve Corporation and run it by virtue of regulatory capture, MSM propaganda, and Congressional lobbying, they’ve set their sights on the creation of an all-inclusive global financial empire. The US Constitution is the de facto “Charter” of that Empire. Only we, the people, can amend it, and in doing so, restore the Republic.

    

Last of the Middle Class's picture

Why not use the pseudonym for Debt & interest? Massive fucking QE!!! While the FED and corporate media peddle more fiction about an improving economy (obligatory mention of how high the DOW is) and forget to mention it's devastating effect on the US as a whole.