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Governments are cutting taxes not raising them, hoping to stimulate consumer demand...
Therefore any increase in the total amount of interest charges within the monetary system as a whole...
will result in a # shortage of money.
This is because the real productive economy is limited by the availability of nature's resources.
The productive economy exists to serve actuall needs
It simply cannot keep pace with the demands of the artificial financial economy...
which is an unlimited appetite for profit...
and which operates with no regard for the natural limitations of the real world.
The theory that there is always enough money to pay the interest has a certain elegance #.
However by the very nature of the # to be true,
it has to be a 100% true. This is impossible.
For one thing secondary lenders # not banks
do comprise a significant proportion of lenders.
And they add their interest charges to money that already # in interest burdain.
Beyond that, we have a cultural expectation: # was money expects to generate more.
Money that needs to be spent to made available to be earned by its original borrower...
is instead lended at interest or invested for gain.
Therefore, we can conclude that the two conditions that must be true...
for all borrowers to be able to make their payments of principal plus interest...
and thus permenately discharged their debt, those conditions are not met by the current system.
Nowhere in the current system # any restriction or relending money that was created as a loan.
Nor is # any obligation upon banks to make their profits from interest available
to be earned by borrowers enabling them to extinqushed their debts.
Quite the opposite, banks invest these profits to make further profits.
And it's not just the banks that cause the problem.
Anyone who takes their ball of money and starts rolling it like a snowball to make it bigger,
does so with the expence of borrowers who will not find that money available...
to pay their debts except as more debt.
And of course, those rolling the biggest snowballs pick up the more snow.
As the same goes, the rich get richer and the poor get poorer.
Money needed by borrowers in the lower realms of # and productive economics,
moves up stairs to play in the cazino world of abstract financial profit...
and that's a world where transactions are little more than gabling on numbers...
in an effort to achieve higher numbers.
They've little or nothing to do with providing the necessities of life.
Today the largest volume of money by far is changing hands...
in where as best described as the gabling economy.
The # exchange markets, the # market and the rest of the financial instruments...
being played by banks and investment funds for as much profit as possible.
For example the volume of trade on the world's foreign exchange markets...
In just one week exceeds the total volume of world trade in real goods and services during an entire year.
This money is in continous played by speculators...
looking to make # profits on currency fluctuations.
It exists but only in the gabling economy.
So how unpayable is the # interest burdain in actual fact?
That it could only be deternaned with certainty by tracking all of the money in the world.
With over six billion people earning, spending, borrowing and lending...
the world's money flows are at least as complex as the flows of the ocean.
They are impossible to know.
But the direction is pretty clear and simple.
And it's the same old story,
the rich are taking increasingly more money into the gabling economy...
where ordinary borrowers have almost no chance to obtain it.
And the only way the system can stay # is to create more money...
and as money is created as debt,
the only way to create more money is to create more debt in every way possible.
Including ridicously easy credit for unquelifed borrowers, massive government expendures on security and war
and bailouts # banks.
How does the individual loan cycle relate to the boom and bust phenomena known as the business cycle?
The individual loan cycle can be described like this:
First there is economic stimulation because of initial spending,
this is followed by inflation because new money basically just dailouts the money supply...
and eventually inflation is followed by deflation...
as loan repayments grantually extinqush the principal removing that money from circulation.
As long as the individual loan cycle # match up, these cycles can smooth each other out.
This creates a fairly stable money supply that leads to fairly stable prices.
Although continous growth of the money supply is required at least in part...
because as you recall the money to cover the interest was never created.
This is the model on which our economy is currently based.
Avoiding deflationary spirals and keeping inflation at a level that doen't upset people's #
constitutes the art of # the economy...
which is rather narrowly defined as achieving so-called price stability.
However a look at the purchasing power of US dollar in real goods over the last century...
instantly reveals what the so-called price stability has really meant.
The dollar has clearly lost almost all its value (96%)
...and is continouing to do so at a rapid pace.
So, price stability is not being achieved...
# hardly needs a degree in psychology to understand how human nature itself...
# the individual loan cycle into the collective phenomena of the business cycle.
The simple reason # that if one person sees great prospects...
into # doing well borrowing and expanding, others would have a confidence to do the same.
Beyond the merely psychological effects, if one business is expanding on the basis of credit,
its suppliers and distributers will find it necessary to do so as well...
or lose that business to someone who will.
The same # effect would occur for a # look and a company credit contraction.
Thus, is entirely predictable that individuals loan cycles would have a built in # to line themselves up...
rather than be randomly distributed and when they do, we see largest scale cycle called the business cycle...
emerging directly from the cummulative of effects of individual loan cycles.
So to sum up, one could say that out of the exchange of promises made by the bank and the borrower...
society gets chronic inflation and # dependancy on banks for increasing infusions of money...
to pay ultimately impossible interest payments.
This results in an inescepable tredmill of accelerating debt and depriciating money.
The only alternative being a deflationary collapse of the economy followed by social chaos or war.
This # unhealthy situation filters down through society weaking harm on every level.
We are like addicts...
but the fix is not more and more ***, it's more and more credit money.
And eventually our collective ability to borrow and repay so much credit becomes exhausted.
This then creates the need for constant expansion of credit into new markets.
In essence creating a # to drive everyone in the world further and further into deb for ever.
In US this constant debt expansion has led to a total credit market debt in 2008
of more than 53 trillion dollars which is about five times the total annual income of the entire country.
So is the world at large happy about its end of the loan transaction?
Probably not.
But the world at large has very little awareness of where these problems originate.
The illusive system of counterfeiting and hidden control that is modern banking.
And how about the banks? How of the bank's fair has resulted of the system?
Well first, by putting up only a small fraction of the money they # lend
tha banks have obtained a river of income from interest payments on consumer loans and mortgages.
Second by using their credit powers to acquire a large portofolios of corporate and government bonds
banks collectively appropriate control over government and industry.