Every day there is news of jobs lost and businesses closing. These lost jobs and closed businesses are not being replaced by new jobs and businesses (1). Unemployment is increasing. Only two years ago our situation was not like this. What has changed? Why are we heading steadily into a depression? What is the cause?
An
economy is not based on money or finance, though most people believe it is (4).
The ultimate basis of an
economy is entirely physical (2). An economy is ultimately based on the
production of physical wealth. Without first having adequate food and energy
production, none of our other economic activities would even be possible.
What is the physical change causing the economy to crash?
Has there been a destructive flood or drought? Have we run out of iron in the
earth? Are all the trees gone? Did a massive earthquake destroy all our
factories? None of the above is the cause. Nothing physical has changed to cause our economy to
decline (3). We
have all the factories we need to produce. We have the energy, materials, and
the know-how to make what we want (5). We have plenty of people willing
to work. Despite this, the economy is crumbling and unemployment is ever
increasing.
The
economy is going bad due to faulty financial systems and human conventions (6).
It should be axiomatic that what is physically possible would also be
financially possible. Money
is not a physically limiting factor to production (7). Money is simply a
means by which we exchange physical goods and services. It allows us to advance
beyond barter. It is not a raw material used in the physical production of
anything. We do not use money in the production of cars or apples. The
production of both is entirely physical. Money is not built into a car seat or
used to fertilize an apple tree. The economy continues to decline solely because the money and economic
system are not properly understood and structured (8). If we had the
proper systems and a correct understanding of the relationship between money
and physical wealth, the economy would immediately begin to improve. Physically
we are capable of improving the economy right now.
Economists claim to understand the economy. If they do, why
is there a recession? People in government claim to know what they are doing.
If they do, why is there a recession? Perhaps if economists and politicians
knew what they were doing, we would not be in this position. Logically, the
economy should improve over time as technology advances, yet it is getting
worse with time.
Economists
like to pretend that the economy is like the weather, sometimes good and
sometimes bad (9). There are bad spots we just have to endure. Why?
There is no physical reason. Our ability to work and produce has not changed at
all. The dishonest money system causes economic instability resulting in cycles
of boom and bust. The simple solution to the problems caused by the dishonest
money system is an honest money system.
Since money is necessary to exchange goods and services, the
flow of money is critical to the economy. When the money stops flowing, the
economy stops moving. Banks control the flow of money. Banks benefit from the
flow of money through the interest they charge for the money they create and
lend. When banks stop lending, money stops flowing, and the economy grinds to a
halt. This is exactly what has happened. This is what is meant by the term
"credit crunch."
Lord Acton is best known for saying, "Power tends to
corrupt, and absolute power corrupts absolutely." Banks have absolute
power over the money system. Banks create and destroy money as they please. Our
entire money system, which should exist for the benefit of the community,
exists instead for banks to make loans and charge us interest. So long as the
purpose of the money system is to allow banks to maximize their profits through
the creation of debt and money, our economic decline will continue. Booms and
busts are integral to a money system and an economy set up for the benefit of
banks. The interests of the people and the interests of banks are in direct
opposition to one another. Our way to prosperity is the elimination of the
money and debt cycle banks inflict upon us.
Lord Acton also said, "The issue which has swept down
the centuries, and must be fought sooner or later, is the people versus the
banks." We are living
in interesting times, and this issue will finally have to be fought and
resolved in our lifetime (10). Banks clearly recognize their interests
and fight to protect them. The banks have been so successful at this that the
government, through the Treasury Secretary, acts in their interest. We, like
the banks, must also recognize our interests and fight to protect them. We can
remain debt slaves to the banks, and continue to struggle just to survive or we
can demand the government provide an honest money system, and thereby become
economically free.
1. Passive present
continuous tense
2.
Simple present tense
3.
Present perfect tense
4.
Simple present tense
5.
Simple present tense
6.
Simple future tense
7.
Simple present tense
8.
Simple present tense
9.
Simple present tense
10.
Present continuous tense
