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The
Key To Understanding Globalism Over
the last 30 years, global trade and the global economy have led almost
every country on Earth into irretrievable national debt. They have
unnecessarily inflicted unthinkable amounts of damage upon the human race
and our planet in the process. Yet our politicians continue to
passionately support globalism as a good thing and the only choice. These
days the voters only appear to have one choice, the Lib-Lab party, which
supports multinational agendas above national interests. Over the last 30 years national currencies
have been changed subtly with the permission of our governments. Most
people still think a dollar is a dollar, but the shift into the credit
based economy that world governments willingly embraced, appears to
have turned national currencies into national death warrants. This
principle can be demonstrated simply with elementary school mathematics. DOLLARS
REPRESENT DEBT Few
people even know how money is created, but it is vital to know in order to
understand how globalism really works. There are no national currencies
before the creation of a debt through a loan. National currency comes into
existence as debt when banks or lending institutions give loans. Then,
while existing as dollars in circulation, the created currency remains
that same debt. When the debt is repaid, the loan and the dollars, yen,
etc that the debt created, all cease to exist. They are cancelled out.
Other loans create more currency by the same process to replace it, and so
on. References to national currency should use
the word debt instead of money. In common usage the word money
is mistakenly associated with wealth, whereas dollars, yen, euros, etc
now represent nothing but a debt somewhere. DEBT
IMPLIES INTEREST Interest
is the planned spanner in the works of the global economy. Economies can
easily be designed that operate well in the real world, but economic
rationalism has a designer-flaw built into it. That flaw works to
concentrate wealth towards multinational industries, but a side effect of
that flaw is that it is killing our planet unnecessarily. When each loan is repaid and disappears,
it leaves a residual deficit of interest that accumulated from the
loan. This is the key point to understand. In order to pay that
interest more currency must be found than, by definition, can ever
possibly exist. Not enough money exists to pay the interest after the
debt itself has been cancelled out. The only way to get more money to pay
the interest is to create more. This can only be done through another
loan. By the end of the second loan, the first loan’s interest has been
paid off but now there is not enough left to pay off the second loan, let
alone pay its interest. A third loan must be made, and as this cycle is
repeated the amount of debt mounts up to impossible levels. This system of
planned global currency shortage is called economic rationalism. It
is as simple as 100 – 110 = –10. A single loan never creates enough
currency to enable it to be paid back with interest. No loan on Earth ever
creates enough currency to pay back its capital and interest. All loans on
Earth have created a global economy that can never have enough currency in
existence to pay out the loans. This is by design, since 1971.
No interest deficits can be repaid by mining more gold out of the
ground, or by any other means. You can mine all the gold you want, but without enough currency in
existence to buy it, more gold is just more worthless yellow metal.
The global economy is a pyramid sale, a planned time bomb designed to
reduce the world and the human race into a global catastrophe. What could
be the motive for such an insane, suicidal manifesto? Debt-dollar currency is very different
from a currency based upon any of several workable systems. Even the old
system of a gold standard is better than debt-dollars. Under that system
the amount of currency in existence implied that an equal value
amount of gold existed in a country’s treasury. In 1971 the USA severed
the link between national currencies and gold. Since 1971, under the new
debt-dollar system, the amount of currency in existence now implies a greater
debt owed somewhere to a bank. If people traded within a realistic economy
that was not self-defeating like debt-dollars are, no debt would
accumulate from trade, and a country’s wealth would stay to grow in the
country and benefit the citizens that produced it. INTEREST
IMPLIES COMPETITION A
‘free market’ implies the notion that competition drives players to
produce the best goods at the best price or drop out. This is how the
concept of market competition is sold to society. The reality of ‘free market competition’
however, is that players do not compete to make a better product, but
rather they compete to get rid of the competitors. ‘Free market
competition’ is a misleading term that in reality means ‘economic
genocide’. Likewise, the only meaning of cooperate, is to
cooperate as a group to remove another group that is in competition. Then
the winning group must begin eliminating each other again. In the current economic system, which is
based upon the principle of ‘not ever enough to go around’, the
players are forced to compete by grasping at the dollars that are left.
The cruellest, meanest, most selfish and most dishonest players get the
available money while the more decent members of society are eliminated
altogether. There is no choice in this. If you hesitate you die because
there is not enough to go around. The surviving players who provide products
and services to the marketplace are not the ‘best of the best’ sorted
through competition in excellence. They are merely the players that fight
hardest to get the insufficient dollars available. Consumer choices,
prices and quality of goods are dictated by how much is left for actually
making the product after the research and marketing wars are over. The global economy is designed like a game
of musical chairs. At the end of each cycle there is always one chair less
for the same number of sitters. Consider the behavioural aspects of this.
If there were enough chairs for all, there would be no rush, pushing nor
overriding sense of competition, and the players would be focused upon
greater activities than merely racing to find a seat. The sociological
effect of the Western economy dictates that there be competition between
siblings, families, neighbourhoods, classmates, workmates, employers, and
businesses.
The human species is basically cooperative and our competitiveness
is but a secondary function of our primary survival mechanism, the
instinct of self-preservation. When society is structured around the rule
that there can never be enough to go around for everyone, its citizens
live in an ongoing terror of not having enough personally. Western society
seems to mostly consist of citizen against citizen. After a while people
in a society like this would have no choice but to be convinced it was
human nature to be viciously competitive. INTEREST
IMPLIES CONTINUAL GROWTH By
the very nature of the requirement to repay capital plus interest, the
amount of money in circulation is always insufficient to meet the costs of
any cycle of production. Likewise, the consumer market is financially
incapable of consuming what it has already produced because there are
never enough actual dollars left in the marketplace. So in order for the
global economy to stay viable it must continually expand. That is
why we have inflation and increasing human population. It was a necessity to ‘develop’ third
world countries so that the markets of the first world countries could
survive via economic expansion. Third world ‘development’ is simply
the transferral of the unrepayable interest debt from the first to the
third world, to benefit the first world at the expense of the third. The
third world was used to generate enough currency globally, to allow the
first world to pay off its debts and interest. After the third world
countries have been irreparably ravaged, instead of prosperity they are
left with unmanageable debts that can never be repaid. The self-defeating principle of our
debt-dollar economy can be illustrated thousands of ways. For example,
banks lend on the borrower’s ability to service a loan. As the limit of
this ability is approached, the banks restrict their lending so they don’t
send the borrowers bust. They restrict lending by raising their interest
rates. As interest rates go up, so does the cost of living. Wages must go
up to keep the living standards of the population above the ‘revolution
line.’ As the cost of wages goes up with interest rates, so does the
cost of the product of the wage earner. Thus at the end of each cycle of
production, our present economy guarantees that there will always be more
goods produced than can ever be sold. There will never be enough money in
circulation for consumers to buy all the goods. Governments regularly make up the
inevitable shortfall of income to large industries as grants, subsidies
and tax breaks. This extra funding for industry artificially gives many
large industries the appearance of being profitable because they can
afford to sell their goods for less than the goods really cost to produce.
The subsidies and special breaks allow industries to stay solvent. If
multinational industries worked to the same rules as the small businesses
that are taxed to support them, the multinationals would go bankrupt.
Global fishing and farming industries illustrate this point well. In the debt-dollar economy ask yourself,
“What causes recession?” It comes as a surprise to realize that
prosperity causes recession. In prosperous times, when society reduces its
debt by paying off its loans, the amount of money in circulation dries up.
Shops may be over stocked with goods and people may want to buy them but
they do not have money to do so. There may be many who want to employ
people or become employed but without enough currency in circulation -
nothing moves. The only way out of recession is to create more
debt-dollars to circulate. This is an addictive, quick-fix remedy that
only creates a bigger recession down the road. The global economy relies upon the
accelerating creation of more and more debt-dollars to stave off
the inevitable meltdown at the bottom of this dangerous global pyramid
scheme. Most of the human conflict and environmental devastation in our
modern world would disappear if the global economy ran to a policy that
made financially possible, that which is physically possible. ‘DEBT
ECONOMY’ DESTROYS THE ENVIRONMENT The
present global environmental destruction is directly related to the
debt-dollar financial system. For over half a century scientists and
research bodies worldwide have been warning of impending environmental
disaster, and we are now beginning to suffer from the disasters we were
warned about.
During the decade of the
1990’s, debt-dollars demanded that the global economy grow faster than
4% each year (about 4.3% per year). At a growth rate of just 4% per year,
in 100 years the global economy would be 50 times larger than today.
Earth is already falling apart from the size of the present day
economy. The cost of curbing and cleaning up all
greenhouse gas emissions and other industrial pollutants is financially
impossible in the present global economy. The ability to clean up the
environment, and the desire of society to do so are evident, but the
scarcity of dollars means environmental care is an economic impossibility.
Economic rationalism is not rational. It should be called economic
insanity or global suicide. EXPORTING
ONLY MAKES DEBT GROW LARGER In
many people’s minds the key to reducing national debt is to increase
exports over imports, thus making a net profit to pay off debt. There are
two flaws in this unrealistic and dangerous notion. Firstly, if virtually every country on Earth
is in debt, as they are, then how can trade ever balance the global
economy? One nation’s profit is another nation’s loss. A group of
bankrupts cannot balance their books by trading amongst themselves. Secondly, imbalance of trade did not create
national debt so it cannot solve national debt. National debt is
not created by trade imbalances but by the planned and unnecessary
shortage of currency in circulation. Trade imbalances appear to be the
cause of national debt, only because the continual shortage of currency
always ensures that nations appear to have a negative trade balance
long-term. This is why so much global trade produces so much global
debt. The debt-dollar economy guts trade of the ability to create overall
profit. Blaming national debt on balance of trade
keeps society focused upon the red herring of ‘salvation through
export’, and conveniently keeps society ignorant, and looking elsewhere
from, the real cause of their social poverty and environmental
destruction. As export industries borrow more money to expand, they are,
in reality, further strangling the very people they claim to be saving. Over 50% of global trade is reciprocal where
exactly the same goods are exchanged between countries. How can a can of
tomatoes be cheaper if we unnecessarily ship it across the world before
putting it on the supermarket shelf? Also, imagine how environmentally
damaging it is to mine the steel for the millions of unnecessary ships,
burn coal for energy to build the ships, and then burn oil to run the
ships. In the modern global economy, creating new
export markets is simply a dishonest front for creating more credit.
Exporting is not about making people’s lives better, nor about balancing
national debt. How can exporting, a system that creates more debt, ever be
expected to get us out of debt? ECONOMIC
RATIONALISM In
a realistic culture the present conflict-based system of creating
currency through debt would not be tolerated. Because of the scarcity
principle built into modern economic rationalism, the debt based
economy demands inappropriate social and environmental policies and
responses.
Western civilization has been
conditioned to believe as a fact that real money exists. In the present
global economy there is no longer any such thing as real money,
only debt-dollars. When society understands this, people will begin
demanding answers to questions like, “Why
do needed resources stand idle just because there is not sufficient money
to make use of them?” “With
so much human endeavour and output, why does it produce so much
scarcity?” “Why is the problem of national debt never seriously
pursued or researched by national governments?”
If Australia closed her shores
to foreign trade and finance, we would soon have more goods available at a
fraction of the price and at a fraction of the cost to the environment.
The cost of petrol is a good example. It is a country’s participation in
the intentionally flawed global economy, which guarantees that the more a
country produces, the more that country will be milked dry of the wealth
of its production. IMPOTENT
‘PROPER CHANNELS’ The
leaders of a society designed around the insanity of economic rationalism
must ensure that the problems of economic rationalism are never addressed.
When problems arise the rulers of society must maintain the appearance
of dealing with the problems, while ensuring that business goes on
expanding as usual.
Watchdog and protest groups from
local organizations right through to the international bodies such as
Greenpeace continually petition Labour and Liberal Governments to impose
restrictions on waste discharge from government and corporate industry.
They appeal for a curb on greenhouse gas emissions into the atmosphere and
the dumping of toxins into waterways.
These misguided appeals are
lodged through politicians, whom in this context are the public puppets
fronting for the CEO’s of the relevant industries. The appeals are as
pathetic as requesting a ‘wolf in charge of the sheep’ to go on a
terminal hunger strike. On a daily basis naïve protesters fight the
endless symptoms rather than address the root cause of all the problems:
the global economy. Human greed is sold back to the protestors
as being the underlying cause of the problems, but the problems caused by
economic scarcity are really the underlying cause of the human fear and
greed. A
REAL ECONOMY
At present there is no shortage
of any resource other than money, yet money is the only commodity over
which we should have full and absolute control. Not only is this
artificially induced conflict redundant and repugnant in this age of
plenty, it runs counter to most of humanity’s yearning for a sustainable
social and environmental world infrastructure.
From this point on, human
civilization as we know it cannot continue unless it switches from the
artificially aggressive economy of debt-dollars, and begins using
currencies that work in the real world. There is no limit to the ways this
can be done. Now is not a time, however, for excessive
blaming, faultfinding or judgement either. These are the ways of the debt-dollar
mentality with its scarcity-induced fear. The way forward from here is by
turning away from competitive lifestyles, and by honestly participating in
our own lives and in our communities. The way forward is to experiment
with different kinds of good lifestyles that are independent of the debt-dollar
economy. Healing the Earth is that simple. Michael
Bond is based in the Byron Bay area, and is an activist for social and
environmental reform. His recently published book ‘Eve of the
Apocalypse’ expands greatly on topics like the above. You
can get a FREE DOWNLOAD SAMPLE of selections from ‘Eve of the
Apocalypse’ from the website www.eveoftheapoc.com.au
The book ‘Eve of the Apocalypse’ is available through the website or
by calling Kate on 0438 710412.
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