I don’t understand how anyone can believe debt is good. Certainly bankers believe other peoples’ debt to them is good. It is a means of control. But debt to anyone restricts freedom. No country can claim freedom if it’s in debt. Even the US government’s presumed debt to the Federal Reserve implies obligations. The US Constitution–as an economic document enslaving taxpayers to the federal government–reveals itself more clearly as this economic drama plays out. The US monetary system is based on debt, essentially to the Federal Reserve, which creates money out of thin air to lend to the US government at interest, based on appropriations by Congress. The Fed has no obligation to the federal government except to keep this fraud going. The federal government has no obligation to taxpayers, except the ones it tells taxpayers they need or want, like military “defense.” It presumes a right to collect taxes on every transaction and has a monopoly (which it has delegated to the Fed) on the currency it considers legitimate. Franklin D. Roosevelt made using gold as currency illegal.
The debt-backed dollar creates an upside-down system with perverted incentives to spend beyond one’s means and live in perpetual debt, just like the government. The debilitating outcome is wasteful spending that leads to over-expanding the money supply, “create jobs” and otherwise bloat the federal government’s reach, without adding anything of value.
There are warnings that this “debt bubble” will soon burst, even though “the economy” continues to “expand.” By “expansion” the fortune tellers on the payroll most probably are relying on interest rates, stock prices, reported corporate profits, low rates of unemployment, and “consumer” spending. Meanwhile, “predictors” of recession include the “inverted yield curve,” in which the yield on 10-year treasuries is lower than that on three-month ones. Who would tie up their money for ten years under that scenario? Maybe the purchasers don’t need their money or expect to need it anytime soon. Are they expecting deflation? Is a recession merely deflation? Isn’t deflation good for people who have more money than debt?
As long as I’m exploding myths, like the one that inflation is good and expected (if you’re a debtor, like the government), or that an “expanding economy” and “economic growth” are desirable. I contest the general assumption that government spending—especially deficit spending—is good for “the economy.” The excuse is that it creates jobs, but the underlying purpose is to widen and deepen the tax base. In order to get “consumers” to spend, you must put money in their pockets, or a semblance of money that can be used to pay taxes, and keep the money wheel spinning.
So people work make-work jobs to get fake money and “benefits” to buy cheap plastic junk made by slave labor in China to pay tariffs to the government that maintains its crop of economic slaves to cater to the Fed and Wall Street. The bankers lick their chops and conspire to create more mayhem and destruction so that they can invent more money to create even more artificial need for themselves.
The US government’s brain child, the Machiavellian first Treasury secretary Alexander Hamilton, must be well satisfied by now, because the masses really have been put in their place, except it’s not working. The latest way for the poor to take advantage of the rich is to become so disabled that they can’t even work, so require more for upkeep than the rich can afford (or want to afford), and they won’t go to war, as in the good ole days, or be considerate enough to die off by disease. Instead, they burden the “health care industry” with their chronic diseases obtained from living in this “wealthy,” industrialized nation that can afford to saturate the land, water, and air with fat, other oils, and their waste. We’re having trouble starting wars, although we’re trying. Big bad China has the nerve to sell more than it buys and is ganging up with our other enemies, like Russia, to provoke us into using our war toys and selling them to all our fair-weather friends.
Collapse of the debt bubble may be the best thing that could happen to the country and the world.
Is debt good? It can be since it can get a person, business or country to where they want to go sooner rather than later or never. Debt is bad when you’re forced to pay it back but can’t. The trick is to have such a large debt that the one you owe would be ruined by your bankruptcy(The Art of the Deal).
I’ve been thinking about your comment and would like to make a distinction between personal debt and government debt. Personal debt is assumed by an individual in his/her own name and necessitates personal accountability. Government debt is assumed in other people’s names (i.e. taxpayers) usually without their knowledge or consent, by those who presume to represent said taxpayers but have no personal obligation to repay the debt.
themselves. In fact, those who incur the debt these days are promising unborn taxpayer-derived income far beyond the “representatives'” terms of office and even beyond the lives of everyone currently alive.
The way the system is set up, there’s a huge perverse incentive for the government to waste money, partly because there is no accountability within the system.
Possibly all large financial systems are flawed. Government debt, stock market, student loans and old age pensions that resemble a ponzi scheme. I guess the idea is to just keep this thing going and hope a solution is discovered in the future. I’d imagine it’s extremely difficult for any country with millions of people to balance growth, sustainability and corruption without resorting to some kind of financial wizardry.
I think it’s a case of kicking the can down the road to unborn taxpayers who can’t complain.
Talking about “paying debt back” is a misnomer. The vast majority of money (98%) circulating in the economy is created by banks out of thin air (by punching numbers on a computer). The money they ask you to pay back never even existed. They just invented it out of thin air.
Yes, which may mean that the national debt is bogus, too. I often wonder about the implications of that.
Hi Katharine… your points are well made, but we need to go much deeper to shatter the illusion created by banksterism. First, all debts are entirely bogus. The way the Ponzi scheme is set up, the more money is poured into debts, the bigger they expand… exponentially. To attempt to pay back personal and national debts as they stand is exactly like trying to put out a fire by pouring gasoline on it. It’s a liquid so it should work, right, since water, also a liquid, does work. Over the centuries the banksters have fine-tuned their scam and used their ill-gotten profits to buy those who make laws by which the rest of us must try to survive. We have no government, not here, not anywhere. The few places that are permitted to be temporarily “harsh” on robber barons called bankers are propagandized to diffuse a dangerous situation. If a couple of banksters are jailed, people cheer and think it presages change when in fact nothing at all has changed, or will ever change. What will happen as rising corruption, lies, threats, sanctions, fake goods and endless wars eat away at the fabric of civilization is a global collapse. Predatory capitalism has to collapse on itself and the patriarchy, that much older endemic system has to consume itself. Man will have little to do with the final collapse because man is enslaved to this dying system and will die with it. Then, for those of us evolved enough to have become observers, we shall see a change that remains outside the ken of typical Earthians of today. The people born under, bred in, and brainwashed by the patriarchy cannot enter humanity’s future because they aren’t human – it’s that simple and clear cut. Current Earthians are pseudo humans and because they are either unwilling or unable to break the yoke of the patriarchy, cannot evolve into humans. Among true humans you will not find racism or misogyny, nor greed nor murder nor love or perpetration of gratuitous violence. A natural Earthian can never, ever, relinquish these traits and will follow the patriarchy’s downfall. To return to your points, the current exploitative, oppressive and murderous system that enriches fewer and fewer at the expense of the greater majority cannot sustain itself. It is falling apart, piece by piece and no matter how many individuals throw themselves into the breaches by implementing “fixes” the body is riddled with cancer and that cannot be fixed. Its death, and that of its supporters and believers, we will call nature’s revenge. Nothing of man’s history or what is taken for granted today will survive the patriarchy’s and man’s downfall. That is as it must be.
Good to hear from you, and I agree the system is rigged and always has been. I do have a different vision for the future, however, especially for those who can break free of the programming.
Recognition that the current world-wide acceptance of debt as money, and how perverse and debilitating that concept is, is a first step, I believe, to overcoming the programming.
Quote: “I do have a different vision for the future, however, especially for those who can break free of the programming.”
That brings up a question for you: how many (in generic terms) do you think, or anticipate, are able or willing to break out of the programming… and more importantly, of those, how many fully realize what the “programming” is?
I imagine driving along a road in a certain country and thinking that I’ve been put on the wrong road (programming) and choosing to switch off at the next intersection to take a different road not realizing that the entire country is the programming and switching roads makes not one iota of difference. The scenery changes, the destination remains the same. If we take the red pill, how deep down the rabbit hole will it take us, assuming we are willing to go along? How far will we allow it to take us before we say, “OK, stop, this is far enough?”
It occurs to me that all roads are socially engineered, and I’ve certainly been socially engineered to adapt to (if not to adopt) the conventions of this place and time. I don’t have to like them, but maybe that’s part of the programming, too. If I were better programmed, I might be happier with how things are. So those programmers ain’t perfect enough to keep their slaves happy. Maybe being unhappy with the program is the first step to breaking free?
Dissatisfaction with the status quo leads to doubt and that has to potential to open up a real can of worms. Violent chaos or compassion?
In the short term both are possible and likely, interwoven with each other. Presumably, the compassionate find some sanctuary within the chaos. It’s possible the compassionate ones will outlast the rest, or lead them out of the confusion. ,
That is possible and it has happened in the past. The compassionate person being of necessity a detached individual has many advantages over the collective minded. The most obvious is, and I know this from experience, we do not allow our personal power to be hijacked by energy sucks or groupies and we never fall prey to group think. As I’ve used the example before, it’s like being a gambler: you have to know when to hold, when to fold and when to walk away.