Synopsis - “The current financial system in the west has a fatal flaw. It will never recover because that flaw has been exposed and those expected to pay for its losses won't.”
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| Plus ça change.... |
Q: How do you heal a dying system that demands the violent loss of human life and the destructive waste of vital resources to maintain its feeble pulse?
A: You don’t.
Monetarist Capitalism, the financial model that we use in the west, is dying. Why? For the same reason Alexander the Great cried when he got to the ocean: There are no new worlds left to conquer. We have reached an economic tipping point and we’re toppling over because the west’s economic paradigm must shift away from unrestrained expansion but it doesn't know how.
The tipping point isn't resource scarcity or shrinking market confidence as we have been told but something far simpler: People are not as productive or as economical as technology.
No matter how they are abused, enslaved or harassed, people will never produce as much as machines. Yet employment is still the process by which most of us earn the right to eat, clothe ourselves and engage with the bounty of this world. This system of governance, of reward and punishment must soon change. How that change happens is entirely within our hands.
The reason our financial system is irreparable is the fact that it was created upon the back of human slavery and it cannot adapt away from that. The labour of human beings is no longer worth the price of their chains. Forget ethics and morality it’s all about money. People get hungry, tired, sick, depressed, and they tend to die. It is just bad business.
Right now there are occupations against the financial corruption of politics all over the western world. Last year saw uprisings and the overthrow of brutal regimes in the Middle East with more to follow. Change is happening everywhere as never before and it is not a conspiracy, it is not the CIA or the Masons. What we are experiencing is so profoundly immense that all of our traditional notions of change makers are frankly laughable.
The 1% is just as powerless as the 99% in real terms. Yes, the international bond holders will most likely have some very hard questions to answer in a couple of years but the cause of the change that is happening to us is bigger than even Goldman Sachs, Merrill Lynch, Morgan Stanley, OPEC and the People's Republic of China combined.
The note in your pocket is a concept, nothing more. It indicates how much the government estimates it can extract from you in taxes before you die.
Money isn’t wealth; stocks and shares aren’t wealth; mansions, yachts and even football teams aren’t wealth.<
Isn’t this undignified scuttle back to the golden calf just too familiar for comfort? 
There is a pre-existing alternative to war and that is slavery. Since 2010 people not even born yet will have to work over 10% of their time for free to pay for a stock market failure that happened in the last five years. This solution will fail because of one obvious truth:
Q: How do you heal a dying system that demands the violent loss of human life and the destructive waste of resources to maintain its feeble pulse?
I have addressed these letters to the 100%, to everyone everywhere. I have no intention of blaming, cajoling or preaching an ideology to you. There are many smarter and wittier writers than me currently engaged in pointing fingers and laying blame.
Blame is not the point of this blog.
The point is to come up with practical solutions, to prescribe small positive steps that have a strong and positive impact upon the conditions that are currently broken or misaligned upon our shared globe.
We can’t go to war over the planet’s remaining resources because we are too good at war and too bad at peace. We can’t enslave our children and our grandchildren because we will die first. And ‘Austerity’ as promoted by the World Bank, the IMF and every government that takes the bailout, won’t actually put Humpty Dumpty together again because it is money itself that is broken not the structures that it supports. Money is broken, it's value has been revealed to be virtual as in non-existent and what we perceive as wealth continues to deplete.
The brutal fact is: Our world is largely conquered but we were never supposed to conquer it. We were supposed to replenish it. We possess all the necessary technologies; we possess the required social cohesion and the population to recreate the conditions we enjoy on this world somewhere else. Sadly, somewhere else is a long, long way away.
We just found it in 2011 and that distant planet, Keppler is the game changer. Our old rules are null and void.
The core problem for humanity is that we do not know how to replenish the Earth because of a false religion that we have all worshipped under for much too long. The more time we give over to Economics, which is essentially the science of predicting human confidence, the more we look like the lost civilisation of Easter Island.
What we require is a system that does all of what classic Capitalism did for us when we could expand without a care and could oppress when we needed new resources but this time our trade must be a virtuous circle which empowers and enriches everyone. We need a new token of wealth that even children can understand and appreciate and even generate.
We need to create an evolution as opposed to a revolution because the best way to minimise the pain of change is to allow the old and the new systems to exist side by side so people can rely on their familiar money system as their failsafe and play with the new wealth system until they come to trust in the new system more than paper money and credit because it offers more. When the motor car was invented horses weren’t shot en masse.
I believe I have the beginning of a superior, virtuous circle system that affords a win-win result for every transaction and puts to bed the spectre of poverty and want forever. This superior system I propose is the rolling out of a new kind of economy where money is no longer required and nor is the profit motive that money (as a synthetically scarce resource) has demanded from each transaction that we have made since the days of the Lydian Lion.
To recap: If we want to avoid a war between the generations, between blocs of nations, between the resource holders and the resource starved, I propose a new form of thinking as well as a new form of understanding our wealth. If you think that’s worth another ten minutes of your time, please, read the second letter for the 100%.
It is called: e=MC²
The western protesters chant “We are the 99%”, implying that the remaining 1% hold all the power, and are content to watch their fellow humanity fall destitute. This is an over simplification.
The 1% is just as powerless as the 99% in real terms. Yes, the international bond holders will most likely have some very hard questions to answer in a couple of years but the cause of the change that is happening to us is bigger than even Goldman Sachs, Merrill Lynch, Morgan Stanley, OPEC and the People's Republic of China combined.
We are no poorer than we were in 2005. This is fact. The physical amount of money has increased not the inverse. So why isn't this making any difference to people's lives?
Forget money, nobody can make money work again. Money has been found out as nothing more than a measuring system for confidence. In short: money is a confidence trick, a scam.
Forget money, nobody can make money work again. Money has been found out as nothing more than a measuring system for confidence. In short: money is a confidence trick, a scam.
The note in your pocket is a concept, nothing more. It indicates how much the government estimates it can extract from you in taxes before you die.
Money isn’t wealth; stocks and shares aren’t wealth; mansions, yachts and even football teams aren’t wealth.<
Money is a form of debt and the era of debt is over. That’s right; debt is over as of now and here's why....
Coinage has been the basis of trade since the Bronze Age. The first coin is generally acknowledged to be the Lydian Lion from Asia Minor (Modern day Turkey) struck about 600BC. It is made of electrum (60% gold and 40% silver) and it was evaluated to be the equivalent of a month’s eating. Right about this time, international wars started too. This is the era of the Trojan horse, the establishment of the Greek city states, the founding of Rome etc. Capitalism, profit, or the concept of getting more out of a transaction than you put in, was born in this age although back then it was most likely called pillage.
Capitalism began with coins because wealth finally became portable and thus, easy to steal.
This portable wealth ensured that armies could be raised using people that didn’t belong to your tribe or were married to your daughters. (This was a feminist disaster, incidentally) Soldiers and slaves now poured in to city states drawn by the promise of gold and silver.
These are the first consultants although their traditional name was mercenaries.
Modern Capitalism or Debt (from the Latin, Debare – He owes) is the brainchild of the Renaissance. The two most important families of the Renaissance in Italy were the Borgia (Weaponry and Popes) and the Medici (Debt and Popes). Up until the Renaissance, Usury or the demanding of high interest on a loan was forbidden among Christian transactions by the Pope’s own command. The only lenders that could charge high interest were Jews by virtue of their being not subject to the Pope. Nobody but the very desperate ever borrowed from a Jew for this reason. (See the Merchant of Venice).
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| Medici Family Crest |
The Medici asserted the right to charge their debtors higher interest because, you recall, they also did Popes. This is the first example of a lobbyist but back then it was called Simony.
Wealth was portable and capable of growing thanks to usury being preached as acceptable, even respectable. The rich of the West could now afford to explore the world and trade in more and more goods, exchanging the wealth of the world with those nifty coins. Until, that is, Marco Polo visited Mongol occupied China and brought promissory notes back to Europe. It took a century but paper money was born.
This was the magic ingredient that turned a very useful system of measuring and trading in wealth to the most addictive drug ever invented by mankind. Now, stuff that was worthless and useless (paper notes) could buy even palazzos in Venice. What was perfectly acceptable in besieged China – promissory notes from a living god and inheritor of all the universe, ensuring that metal coins could be forged into arrowheads against the Golden Horde – were actually worthless beyond the reputation of the person issuing the notes in the first place.
Nothing has changed. Modern currency is FIAT, in other words, not tied to any particular source of wealth but the confidence of money traders. Money is STILL a confidence trick.
Normally, confidence comes and goes but when it has flat lined as now it is “Game Over”.
Normally, confidence comes and goes but when it has flat lined as now it is “Game Over”.
What is happening now is the inevitable result of money being confused with wealth when money actually has no connection to wealth. Money denotes no actual value other than how a volatile market feels about it. Gold has now become the acceptable wealth among those that trade in such things because that is all they know other than money and bonds.
We are no longer lost in the desert. Gold, like money, glistens but is essentially useless. You can’t eat gold; it’s not the most reliable building material and it doesn’t keep you warm in winter. In a real world situation like, getting on the lifeboats before the Titanic sinks, holding an ingot of gold is NOT an advantage; it’s a liability.
Add to this a majority population that is both educated and used to certain comforts as their inheritance and you have a volatile situation that we have visited again and again. We are at the dawn of yet another war. Economically, this is considered good news as war pays a lot of bills and societies galvanise into great leaps of technological development and industrial production. But this time there’s a problem. We can no longer do war; our weapons are just too powerful. Remember, it was unjust ‘Austerity’ that provoked the Second World War.
This; the International Declaration of Human Rights; The United Nations and the emergence of electronic worldwide communications has rendered all the old solutions to financial crises null and void. We can’t actually bomb our way out of this problem. And the problem is this: money that is hoarded does not generate wealth. All power, including financial power, is fluid. It needs to flow to be of any use. There is no flow because those that are supposed to be managing the distribution money are all hoarding the money.
This is a fatal error. Water that is trapped goes stagnant. Money that is hoarded devalues.
If you absolutely deny a junkie his or her drug they will wail and suffer but ultimately, they will recover from their addiction. I said that money is a drug so recovered junkies are just plain bad for the economy. People that cannot access credit, even small amounts of credit, do without. They find other ways to thrive; they develop other values; they place their trust in what is reliable. Societies that crawled out of the wreckage of WWII already know that.
Debt as a concept, as an addiction, as a means to compel people to obey is over because debt needs credit to exist. No credit = no interest = no debt. Monetarist Capitalism has served the West extremely well for hundreds of years but it was also a cruel, vile master because it was always going to fall like a house of cards. Money is based solely on confidence, nothing more.
The next generation simply WILL NOT PAY. They will find their own means to thrive.
Q: How do you heal a dying system that demands the violent loss of human life and the destructive waste of resources to maintain its feeble pulse?
A: You don’t. – You replace it with a superior system that works for everyone.
I have addressed these letters to the 100%, to everyone everywhere. I have no intention of blaming, cajoling or preaching an ideology to you. There are many smarter and wittier writers than me currently engaged in pointing fingers and laying blame.
Blame is not the point of this blog.
The point is to come up with practical solutions, to prescribe small positive steps that have a strong and positive impact upon the conditions that are currently broken or misaligned upon our shared globe.
We can’t go to war over the planet’s remaining resources because we are too good at war and too bad at peace. We can’t enslave our children and our grandchildren because we will die first. And ‘Austerity’ as promoted by the World Bank, the IMF and every government that takes the bailout, won’t actually put Humpty Dumpty together again because it is money itself that is broken not the structures that it supports. Money is broken, it's value has been revealed to be virtual as in non-existent and what we perceive as wealth continues to deplete.
 |
| Keppler: The game has officially changed. |
We just found it in 2011 and that distant planet, Keppler is the game changer. Our old rules are null and void.
The core problem for humanity is that we do not know how to replenish the Earth because of a false religion that we have all worshipped under for much too long. The more time we give over to Economics, which is essentially the science of predicting human confidence, the more we look like the lost civilisation of Easter Island.
What we require is a system that does all of what classic Capitalism did for us when we could expand without a care and could oppress when we needed new resources but this time our trade must be a virtuous circle which empowers and enriches everyone. We need a new token of wealth that even children can understand and appreciate and even generate.
We need to create an evolution as opposed to a revolution because the best way to minimise the pain of change is to allow the old and the new systems to exist side by side so people can rely on their familiar money system as their failsafe and play with the new wealth system until they come to trust in the new system more than paper money and credit because it offers more. When the motor car was invented horses weren’t shot en masse.
I believe I have the beginning of a superior, virtuous circle system that affords a win-win result for every transaction and puts to bed the spectre of poverty and want forever. This superior system I propose is the rolling out of a new kind of economy where money is no longer required and nor is the profit motive that money (as a synthetically scarce resource) has demanded from each transaction that we have made since the days of the Lydian Lion.
To recap: If we want to avoid a war between the generations, between blocs of nations, between the resource holders and the resource starved, I propose a new form of thinking as well as a new form of understanding our wealth. If you think that’s worth another ten minutes of your time, please, read the second letter for the 100%.
It is called: e=MC²
