Saturday, June 20, 2009

The Answer to, "Why is everyone broke?"

Alright, I'm gonna try this one last time. Hopefully this will be clear, short, and illuminating...
The reason everyone is broke is because there is no money to have. i.e. There physically aren't enough dollar bills in the system for it to function properly. Seems kinda peculiar, doesn't it? O.K. so next we ask, "Why?"

Because the system has a fundamental flaw in it's design. Well a flaw if you're on our side of the equation. A tool of control if you're on the other side. You cannot create a sustainable system if you collect interest on the funds introduced to create the system in the first place.

I create a new economy by printing Eric Money and giving you $5000 of it. But it's a loan and you have to pay 1% annually. Seems fair. Well, lets consider... Lets say you intend to pay back the loan within 6 years, by paying $1000 per year, and then whatever interest has accrued. A noble plan for sure... year 1 - you trade with people, etc, etc. and at the end of the year, you've set aside $1k and give it to me. Year 2 - same result - another $1k for me. Year 3 - you have to use violence against children, but you get the $1k - You're half way there!!!!

But you'll never get there. At this point you've paid me back $3,000. That means that there's only $2000 left circulating in our little economy. Even IF you busted some heads and did some magic and pulled together the $1000 each of the coming 2 years, that would be it. There would be ZERO dollars left in the economy. Now how are you going to make this final payment? How are you going to pay the interest? You're not. Cause there's no money to pay it with.

That is fundamental reason the economy is failing and destined to fail (along with the world economy - same principal applies regardless of scale). Although, in reality, it doesn't get to the final stage like the example. In reality, the whole thing freezes up before that third payment was made. See you in hell mo-fo's!!!

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