We all want to make the world a better place not only for ourselves but for
our children and our children's children. But what are we willing to give up
in order to reach such a goal? All through the history of humanity, civilization
has functioned on a system of domination and exploitation. Kings, emperors and
their descendents ruled over peasants and slaves. Lords and nobles and their
clan lived in comfort while serfs worked the land. A social stratum of class
structure existed then and still exists today. Our modern concept of neo-liberal
economics, aka capitalism, is embodied in "trickle-down economics".
The king of the jungle eats first and leaves the remnants to the vultures and
Before we can hope for a better world we have to fully understand the role that money plays in our modern society. And yes, it does come down to the battle between ideologies, capitalism versus socialism. The basic premise of capitalism is the right to generate financial profit. In contrast, socialism is founded on the golden rule and striving towards the general good of society. In our current corruptible and corrupted monetary system, money represents power. Money, like laws and guns are created by the ruling elite in order to control the rest of the population.
Bartering is the exchange of goods and services among each other without the use of money. This is the true economy. The moment we introduce financial gain through the charging of interest and profit taking, we open a Pandora's box of greed, corruption and quest for power. Money must be continually created and injected into the money supply in order to maintain this pyramid scheme.
Money is created in one of two ways. It is created by central banks by printing money. It is also created by commercial banks and lending institutions by providing loans to the public, companies and governments. Money created by central banks account for less than 5% of the total money supply. The rest is simply an asset on the books of financial institutions that continually earns interest. The interest is paid by issuing more loans.
While money is necessary for the efficient functioning of society, money also represents power. When a significant amount of money is accumulated in the hands of few, disaster looms.
One can build a nest egg through hard work, profit, prudent saving or investing. But what does it mean to acquire financial wealth? Where is the surplus? How can everyone increase their financial wealth? The truth is financial growth can only occur by continuously increasing the money supply.
Money represents debt on future society.
Whatever monetary surplus one acquires is an entitlement from the rest of society.
There is no such thing as a free lunch.
Where there is capitalism there is no equality. Equality becomes an illusion and a myth. We all cannot make a profit at the same time. Financial profit gives us power over those with no money.
The Great Train Robbery in 1963 netted fifteen train robbers £2.6 million (the equivalent of £46 million today). This is a drop in the bucket compared to the $700 billion bailout handed over to banks "too big to fail". The bailout of financial institutions using public money is the largest reverse bank heist in history, paid for by the 99%. It is using socialism to support capitalism.
Our capitalist economic model of expansionary monetary growth is self-limiting. Not only are we rapidly depleting the earth's natural and non-renewable resources for short term monetary gain, we are also destroying the very same ecosystem on which all life as we know it depends.
It means that while money is intended to be a method of accounting, a mechanism of checks and balances, of fair distribution of effort and rewards, it has evolved into an instrument of power in the hands of the ruling class and an illusion for the rest of society.
Money is created freely out of nothing by the banking establishment and then usurped by the elite ruling class. This gives them the power to control and dictate government, public and national policy, not for the benefit of society but for themselves and offspring.
In summary, we need to understand the following:
Money is created from nothing and then amassed through interest and profit by the financial elite that create money in the first place.
We have reached an era of End of Growth. We need to embrace the concept of Steady-State Economics.
What can we do immediately in order to break the stranglehold that banks maintain on the working class?