Wednesday, July 25, 2012

Perverted Money Creates Odious Debt

The Federal Reserve Note (FRN) is what most people call the US Dollar. It isn't really American money, it's more like a casino chip owned by the same guys that run Monte Carlo (more or less.)

The trouble is, it is the US Dollar that runs the world. In fact, the US Dollar pretty much built the world. Not that the US Dollar acts alone. The same guys that run the casino run all the banks, worldwide with the possible exceptions (though I doubt it) of North Korea and Iran.

Whether you want dollars, euros or yuan, some friendly banker will be happy to make the exchange for a small fee. This seems like a useful service until you remember the same guys run all the banks.

It is the nature of our purported economy to not only create every dollar (or its ilk) as a debt, but to charge compound interest such that every dollar created costs the borrower two - one as repayment and another as profit.

Creating money out of thin air and then charging interest is bad enough, but bankers make loans against collateral. Money is borrowed against wealth, real or imagined. Hopefully, real. So, bankers loan you something unreal against something real. Paying them back (plus interest!) takes real work, too.

If every dollar created demands another dollar in interest, there can never be enough money in the world to pay back all of the debts owed. Since there is never enough money, money must be continually borrowed. Requiring interest on money (created out of thin air) imposes an imbalance on the economic system such that people run around trying to earn money that just does not exist, yet.

Soon enough, someone refinances (as they must) and then someone else can be paid. What if no one refinanced? What if everyone was so broke that they could not refinance? This is what happens when the banks have sucked up so much money that every profit people make from working goes to pay “debts” to bankers. When the principal and interest are more than the world can pay, then what?

We are about to find out. The world is now precisely in the situation I have described above. Worldwide bankruptcy. No one wants to admit this, but watch as things unravel starting with the poorest of people. Countries are going bankrupt and the terms of their loans are much gentler than those suffered by the people themselves. Spain may pay 7% interest but I am told to pay 28%.

The money-changing scam has been going on for centuries but has been refined and legitimatized over the last 100 years or so. In ancient days, usury was forbidden by all three major religions. That is really remarkable. We think of those people as ignorant but it turns out they knew more about money than we do now. Maybe it was the home-schooling. Public schools do not educate the public about money.

So if this system guarantees bankruptcy, why has it been imposed upon the world? Because a very small number of people at (and near) the top benefit unfairly. They control the money and the money comes with hardly any work. Sure, they must keep vigilance of the status quo, but fixing LIBOR, gambling on derivatives and foreclosing on little old ladies is a lot more fun for them than digging a ditch. The people at the top love the way the world works. Most people are blind to all of it.

If the entire corrupt system is funded by perverted money how is any debt a valid debt? The lack of money in circulation demands a continuous stream of refinancing, all of which were coerced.

All debt being coerced, all debt is odious. It's time to evolve beyond usury.

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