New World Order University Forum

Everyone (except the Left) is aware by now that there is too much debt in the world. The high relation of debt to real assets is causing every country and every sophisticated investor around the world to try to figure out how to get out of dollars and into tangible assets. This means, every smart person is working against the Fed’s policy of reinflation, which is aimed at convincing more people to take on more debt.

As this situation comes into high relief, it exposes the bankers as essentially parasites feasting on the greed of the borrowers. The peculiar nature of New World Order elites is, they favor bailing out the bankers when the loans go bad. This situation is causing the “economic consensus” to split into politicized factions. Some people are going to profit nicely if inflation picks up. Their assets will increase in value and their debts will be easier to pay off in cheaper dollars. The little guy, the taxpayer who will end up paying for the bailouts and the government debt, is on the other side of the table and looking for a way out of being victimized by this crooked game.

The problem for any reform movement is, how to propose an alternative economy that can gather broad support. The socialists feed off of this need by making false promises about socialism as an end to banker exploitation. The naive masses fall for the socialist line if they fail to study what happens when the socialists take over economies. There is no viable socialist economy.

We’ve been looking for a smart alternative vision, and today we found it in “Debt-Based Positions: The Great Mirage” at SeekingAlpha.

This article will orient your thinking away from the present interaction of institutions, that is, away from tinkering and toward an understanding of debt as the essential problem in economic functioning. The problem with the economics profession is, it accepts the present arrangements and wants to fine-tune them. Most commentators on the economy have their faces pressed too close to the window pane to offer any thought of value. Here is the deep perspective you need to understand why the old economy failed and why restoration of previous conditions is also a recipe for failure.

Let’s summarize:

Debt is inherently unstable.

The man owning the crane is the best of all possible arrangements.

Ponzi value is illusory casino value. Real value is ownership. All those people who take out loans to buy stuff only drive prices up (the inflated bubble economy).

Any translation of debt into equity is an improvement over the current situation.

The Bible’s injuction against usury (charging interest on a loan) is wise. Violations of this principle are foolish.

Debt is the basis of unsustainable economies. Green energy schemes are not the solution.

Products created to stabilize the inherent instability of debt make the situation more unstable.

The uncertainty of future repayment of debt makes the economy a “game of confidence” or a game of risk-taking. Why should this be accepted as a normal economic system? This view of economy only benefits the bankers, the financial manipulators, and the speculators who guess right.

The point is not to build more sophisticated financial markets and financial instruments (insurance), the point is to get rid of these markets and instruments and return to an ownership economy with debt issuance as an unusual occurrence, not for profit but for cooperative preservation of highly valued assets.

To reverse this bad trend, we need more productive assets and fewer financial instruments.

The instability of the system allows and encourages criminal behavior, and one of these criminal behaviors is socialism.

The bankers and their political friends are able to continue running this game because the “average person” comes into the world naive about how it works. The little people are more honest than the criminal elites. They believe in the sanctity of debt, in the moral obligation to repay. Break this naive calculus, wise up the people, and the victimized borrower can walk away from debt peonage simply by walking away from an underwater loan. On a mass scale, this action would bankrupt the banks. This seems like a catastrophe to the naive. Who will give us loans if our credit is bad?

Loans are the problem. Banks are the problem. Paying for things when you can afford them with real money, not Federal Reserve notes, is the solution. Sober up. The system is so out of control everybody around the world is at risk from its excesses. The more people who hang on to the present system, the worse it gets. Find your way out of it. You can do this by focusing on real productivity of real goods, not by taking on a college loan and getting a job in a socialist bureaucracy. You can do it yourself, it doesn’t take an Act of Congress. And, you’ll feel more noble and be more noble if you do. Otherwise, you are going to get compromised by a dirty game. Even if you feel successful because you played and won, you are not really successful, you’re just clever and a bit lucky. And you are still part of the problem because you are pushing the real costs onto the naive and the weakest among us, including those not yet born.

The world financial system is a dirty game. Jump out of it. Yes, you can structure your life around genuine human values rather than financial values. The social scientists, futurists, and system-builders are trying to pull you in by offering you a false solution and false promises that you will do better with them by becoming a victimizer rather than the victim. That is the New World Order con job.

Tags: debt issuance, debt peonage, sustainable economics, too much debt is the problem in the global economy

This entry was posted by Director on Wednesday, December 2nd, 2009 at 4:39 pm and is filed under Global Economy, U.S. Economy. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.