Greece and the Myth of Modern America
A few paragraphs from an article using Greece as an excuse to try waking up people outside the CM crowd. And it briefly evaluates which is the best option for fixing the problem (austerity, end the fed, gold standard, or asset money)…
[quote]I have been hearing a lot of chatter recently in coffee shops and lunch restaurants about the financial crisis in Greece. As I eavesdrop, the impression I get is that people are trying to convince themselves the problem is “over there.” They discuss how Greece could have avoided the situation and debate what they should do now. So naturally it is an isolated, country-specific problem “over there,” right?
But isn’t this déjà vu? Haven’t we seen this before?
Indeed. It is the same situation that has occurred in Iceland, Ukraine, Argentina, Indonesia, Malaysia, Mexico, England, and countless other countries. It is not a problem of individual countries, but rather the global monetary system that is built on debt and rules most countries. So the problem is very much “over here.” Most of the world, especially the United States, is just as vulnerable as Greece. It is only a matter of time.
Debt-Based Money and Financial Predators
Countries are vulnerable to attack because their currencies are nothing but floating debt instruments controlled by bankers. This means they are not countries as much as administrative district for the banks that rule them. This is why Thomas Jefferson said “banking institutions are more dangerous than standing armies.” Bankers and their Ivy League servants can overthrow a country more completely than an army can.
The Myth of Modern America
We must recognize that our monetary system is nothing but bank credit, i.e. debt, so it is entirely open to attack. Even if you are not personally in debt, any savings you have is just a measure of how much another person, business, or government is in debt. In our current system, no money gets into circulation except by borrowing from banks. There is no other source! The United States issues no sovereign money! That is not freedom ladies and gentlemen. We are hostage to the “illuminated” ones who enrich themselves by putting everyone else in debt.
The United States government has failed to do its job as dictated in Article 1 Section 8 of the Constitution for 100 years—control and defend the value of our money. Therefore, the United States is not a sovereign country, and the American people are not free. It is time to admit the truth and either do something about it, or stop blowing up stuff on the 4th of July believing a myth. If your Democrat and Republican politicians do not talk about this issue, they are either too ignorant to have the job, or they are getting banker kickbacks and staying quiet on purpose. Either way, kick them out, stop voting for corporate puppets, and demand real leaders who will do their job (Texas has a chance with Debra Medina in their gubernatorial election). No other issue matters at this point. Most of politics is a ruse to distract you from the fact that your country and your economy are hostage to banks and financial predators.
The Unstable Mathematical Flaw of Our Economic Model
The only way for this system to keep running is for us to collectively go deeper in debt to the bankers. That is why the US government continues increasing the debt ceiling. They have no choice as long as they refuse to do their constitutional job and provide sovereign money that is not an interest-bearing debt to banks. Why must we go deeper in debt? Our economic model is built upon fundamentally unstable math: P < P+I. P is all the money in the economy at any given time (principal). I is the interest that compounds on top of P that must be paid back. So the economy is constantly running faster and faster to generate more P in order to payback P+I. That creates perpetual exponential growth, perpetual increasing velocity, and deeper servitude over time. I grows faster than P, and since production has been sent offshore, there is no way out of the black hole without borrowing more. This is precisely what people like George Soros prey upon—currencies stuck with an impossible debt load. This system guarantees an eventual attack. To repeat: we have no money unless we borrow. We have no way to pay it back unless we borrow more. Borrowing more is precisely what eventually kills the economy and allows predators to become billionaires while the rest of the population loses their life savings. What can be done about this?
Excellent work strabes! I hope this article gets read by many who take the time to investigate what you are saying. I don’t think I’d be exaggerating if I said that P < P+I is the greatest story never told. Or maybe more accurately, it is the greatest story ever forgotten collectively by civilizations.
All talk about regulations or restoring integrity in our economic system is meaningless unless one understands that the dice are loaded via P < P+I. It amazes me that this truth remains elusive while it is self-evident when expressed in simple mathematical logic.
Congressman Wright Patman (chairman of the House of Representatives Committee on Banking and Currency for 40 years) often discussed this fraud but his words never took traction. “I believe the time will come when people will demand that this be changed. I believe the time will come in this country when they will actually blame you and me and everyone else connected with this Congress for sitting idly by and permitting such an idiotic system to continue. I make that statement after years of study.”
I hope he is right and I am pushing for that day to come. Every sitting politician must be called to the carpet to explain if their acquiescence was the result of incompetence, corruption and/or treason.
This is one article worth Printing and handing out to people. Think I will
Awesome article. If you don’t mind I may follow suit with JK121 print and hand out with a note at the top telling people to make copies and redistribute. May end up being your modern day “Common Sense.”
One thing I’ve found is people have a hard time swallowing this type of stuff without a proposed solution, so what is your answer to how you end the article, “What can be done about this?”
Personally I would go with CM’s principle of growth vs. prosperity. Adding to it, I’d say a lot of Americans need a psyche change that stops looking outwards toward materialism to bring happiness. I believe if more people placed more value on community, friendships, family, giving back, being industrious, self growth and actualization we wouldn’t be trying to spend so much money to buy ourselves happiness and be pretty much a slave to debt. I think banks would get frustrated with our lack of reliance on material goods to bring us happiness and find new hosts to leech off of.
The most peaceful period of my life to date, is when I had hardly anything material in my life. Yet I had great friends, knew who I was as a person and what I valued, gave what I knew about happiness to others who struggled and was thirsty to learn and did so by being an incessant reader. I believe if there was a push toward simplicity and gratitude for the simple life, Americans would change the current political system from the ground up. God knows Washington’s not gonna change anytime soon.
Now if I can just find my copy of Thoreau’s “Walden.”
and since production has been sent offshore, there is no way out of the black hole without borrowing more.
Before I say anything, GREAT ARTICLE! I really enjoyed reading it.
We have to understand that production creates no money and we have a debt that we cannot produce our way out of. We cannot borrow ourselves out of this mess.
So the economy is constantly running faster and faster to generate more P in order to payback P+I.
Here is where nearly all businesses need to wake up and fast. Their increased production does not create any money. All money is only created at the end of a bankers ball point pen, or computer. We cannot produce our way out of this debt until we have some form of production create money then we would have a mechanism to produce out way into prospertity instead of working ourselves into a financial ruin. The only money business capture through commerce is someone else’s borrowed money.
What can be done about this?
The solution to this is so simple it repels most peoples minds. My only guess to that is most people do not want to come to grips with the fact they have been stolen from their whole lives. The solution is to clearly identify the problem. All most is created as a debt to someone before it can move into circulation. Right now all money is created as a free gift by the banking system to themselves, then they loan that brand new money at interest, where when the principle of the loan is repaid it is written off the books and extuiguished. The catastrophic debt comes into play when by the very mear simple laws of mathematics proves that when time and interest kick in on borrowed money (the only source we have) the debt grows but the money supply does not. Now in order for one borrower to get out of debt he has to capture back all of his borrowed money plus the interest. Where is the money created by one borrower to pay his interest? It is created somewhere else in the economy by another loan.
As this debt grows so does the interest load. As the interest load grows so does the cost of doing business. As these costs rise, in order to stay in business as long as possible, businesses must find a way to reduce their operating costs in other areas. This is the only reason why businesses have moved their production overseas. It is not because they would rather employ a chinese man or a mexican man, it is simple math. If they cannot pay their ever growing interest load, they will go out of business, and if no businesses are willing to address the reason why the interest load is always increasing, and fix it, they are left with only a few options.
Find a cheaper raw material, cheaper labor, or increase their prices to cover their cost of doing business (interest).
All of this stuff is really simple if people would just become willing to take the time to study the most very basic fundimentals of our monetary system and how money is created and moved into and out of circulation, and the consequences there of.
We have no way to pay it back unless we borrow more.
There is no process in which money is created to pay the interest and at the present time the debt is absolutely unpayable.
Great article Strabes. It’s an excellent read.
Larry, I think your last sentence is important and we need to push people to push their politicians running for office on this issue. We should demand their opinion on it and if they have none then send them packing. All the other crap they talk about is irrelevant as long as this issue continues because unless it’s fixed, death of the system is guaranteed.
Hello Mr. Ape, you’re only seeing a few paragraphs of the article. Click the link to the full article at the top of the post. It runs through a few solutions, or false solutions. Thanks for the kudos.
Thanks Thomas. Mathematicians claim to have modelled the cashflows (using differential equations) such that if velocity is high enough, i.e. if the production engine cranks fast enough to pass the money back and forth back and forth back and forth, then the system can maintain a steady level of debt. The interest never gets paid back completely of course (as you know, we always have debt in order to have money), but the system can keep the inflows/outflows between the banks, the merchants, the consumers in balance without needing to borrow more. I personally haven’t studied the proofs so I just give them the benefit of the doubt and add this clause to my statements whenever I write that we can’t get out of our infinite spiral of borrowing more. I figure whether they’re right or wrong, at this point it doesn’t matter because we have shipped it all offshore.
Mathematicians claim to have modelled the cashflows (using differential equations) such that if velocity is high enough, i.e. if the production engine cranks fast enough to pass the money back and forth back and forth back and forth, then the system can maintain a steady level of debt.
If that was true the gold would have worked for money. Because all that would have had to have happened to meet the demand for more gold money is for the velocity of the transactions in gold to increase and the gold would have increased in volume……Any thinking person knows this is false. If we both had a dollar bill and passed it back and forth at the speed of light for 10 years, how many dollar bills would be still have? Just one right? Those professors are either completly uncapable of using simple logic and reasoning or they are purposely teaching false theory to their students to keep them from looking at the simple basic understanding of how our monetary system functions. Velocity of money is a sham.
I would question how good of a mathematician they are if they can’t figure out it doesn’t matter for fast you pass something around, it’s never going to increase in quanitity.
but the system can keep the inflows/outflows between the banks, the merchants, the consumers in balance without needing to borrow more.
I think you’re forgetting the most important part that when the principle part of the loan is repaid that money is extuiguished. If we don’t continue to borrow more as long as someone, somewhere in the system is paying on the principle part of their loan the money supply is being destroyed. There is no money just “out there”. All money only comes from the tip of a bankers pen, or computer entry in our modern money system.
The interest never gets paid back completely of course
The interest never gets created at all. Ever. People may use someone else’s borrowed principle to pay their interest, but the interest is still never created.
as you know, we always have debt in order to have money),
Under the principles of the 1792 coinage act anyone who had or dug some gold or silver bullion could have it turned into money free of charge.
personally haven’t studied the proofs so I just give them the benefit of the doubt and add this clause to my statements whenever I write that we can’t get out of our infinite spiral of borrowing more.
Every one of the economics proffessors at the University of Minnesota is on retainer with the Federal Reserve Bank of Minneapolis, so I wouldn’t trust to much of what they will tell you when they are on the payroll of the masters of deception.
then the system can maintain a steady level of debt.
This is the reason why I couldn’t go to college anymore. Why would i want to pay these guys to teach me things that I know are clearly not true. First they start with a flawed theory, then they add SOME variables to make it ‘work’ and never deal with the fact that money is destroyed when the principle part of a loan is repaid and that the fact the the debt grows the moment time and interest kick in on borrowed money. I’ve yet to see any economics book that deals with the effects of interest. They also never deal with the fact that all money we have in circulation came into exsistance through an extention of credit by a private commercial bank. Some economics text books MAY have one or two sentances mentioning that banks create money but usually they teach there is just money “out there”.
The sad part is after many years becoming “educated” most people find it near impossible to come to grips with the fact they have been lied to, and had their time and money stolen from them for a benifit of the few.
Strabes is one of the few who joined the upper stratum of society and has somehow began to see how badly we have been lied to. It’s really quite rare. You have no idea how much fun it is to get to speak with someone with your background.
I figure whether they’re right or wrong, at this point it doesn’t matter because we have shipped it all offshore.
If they are anything like the profs at the U of M…….I would say they are wrong, but aren’t wrong by accident.