This is another blog that ought to have been written 3 weeks ago – balancing the books. What do we understand about balancing the books? When we run our homes we earn money and we more or less balance the books, as discussed below we are conned into debt but even that is connected to book-balancing. But what about our economies? Are they balanced?
The Euro escaped the worst of the crash in 2008, and whilst the pound dropped from 70 to 50 Baht the Euro dropped much less – I was envious. But now the Euro is perhaps suffering more. And what is the government response? Austerity programmes. Implicit within an understanding of austerity is a notion that the government is balancing the books, I assume. Just ask the question, why is there an austerity programme? The government has a certain amount of money, and it needs to spend more in certain areas. So it spends less on the hospitals and spends more elsewhere – where? Well most recently governments spent bailout money, in other words they gave money to the bankers and these bankers paid themselves bonuses. In some ways it is directly possible to correlate the sacrifices that people are now making in the austerity measures with the bonuses bankers paid themselves.
But I still raise the question. Are austerity measures about balancing the books or are they part of a scam – a Ponzi scheme? In an earlier blog I discussed an Argentinian’s description of a Giant Ponzi Scheme, it is worth watching this again – assuming it was ever watched!!!:-
He describes the global financial system as a giant Ponzi scheme with these four sides of a pyramid (pyramid selling is one type of Ponzi scheme):-
Planned monetary insufficiency – need to go into debt.
How does this fit in with the austerity measures? Debts were developed increasing banking profits. there was a crash and bailout money was given to the bankers. And now people are suffering austerity measures to pay for privatising these profits.
But in many ways this still fits in with “balancing the books”, money is taken from the social arena to pay the banksters. However I would argue that there is an even worse Ponzi scheme being perpetrated. To best understand this it is necessary to consider two economies, the 1% economy and the 99% economy.
Now the 99% economy is “balancing the books”. Those people who accept austerity believe their government needs increased money to balance the economy. Although no-one really knows how (including the government) there are different levels of acceptance of austerity because to different extents people trust their governments.
Now I want to describe the 1% economy. This economy is concerned with one thing only – increased accumulation of wealth and assets to the 1%. Why does this not fit in with “balancing the books”? Because if the 1% chooses to create money they will. The money doesn’t have to be “real” in any sense of the word there just has to be some notion of accumulation. If the Fed or the Bank of England wants to create money it can. What is the basis of this money? There is none, it is fiat, it is not sustainable, it is not gold, it is just a series of binary digits on a computer. It is fraud and deception. So what happens to this money? It gravitates towards the 1%. Sometimes it is done quickly and grossly as with the bailout monies, at other times it takes more time. But be assured most of the money ends up with the 1%. What are derivatives, futures? Nothing. People pay huge amounts of money for nothing. Why? Because they can sell these nothings for huge amounts of money. What was the cause of the 2008 crash? Sub-prime loans. The banks gave loans to people who had no chance of paying them back, packaged the loans as hedge funds, and bought and sold these hedge funds of nothing. Then people questioned and there was a manufactured crash. (Explained with humour here). And the result of the crash – austerity? Where has the money gone? It has been accumulated by the 1%, the people are homeless on the streets. or suffering with austerity measures.
Now the 1% economy supercedes the 99% economy, but of course there is interconnection. What if everyone believed what I was saying – that the economy was based on nothing and that the underlying purpose of economic strategy is to facilitate increased accumulation by the 1%, there would be outrage. No-one would trust governments, and the finance system would be ruined. The wealth of the 1% would become meaningless, and people would be forced back to barter. So 100% of the people are invested in this fraud, this fraud is the basis of our way of life.
Whether we choose to accept it or not, our way of life is controlled by a huge con game in which money is privatised to the 1%. Obvious questions arise. As the 1% have control why don’t they just create more money for themselves? Why go through the charades of the economies and economic startegy? Because if people believed that the dominant 1% economy is the way it is, they would not accept and start making demands. Economic strategies are based on collusion, we collude with the 1% intentionally or otherwise allowing their increased accumulation so that we can maintain our lifestyles. But what are those lifestyles? Wage slavery. We work to create products that are part of the 99% economy, that we buy and sell with the money we earn. Meanwhile the 1% invent money such as derivatives and futures to increase their accumulation.
Why don’t we work and create products for ourselves? Why don’t we control the ways we trade? Through cooperatives and consumer associations. Why not barter? In the end as the 1% get greedier and greedier there will be no choice. Forewarned is forearmed. Develop skills that are not based on a a moneyed economy. I was a maths teacher, what use is that to anyone? Everyone wants maths in our current way of life, but what mathematically is there to learn if the economy collapses? I survive on my pension so I am part of the huge con. And if it collapsed what could I do?
It is so obvious now that there is no sense to economic strategy. There are no books being balanced, and the economy only exists because somehow enough people accept the way it is and play the con game. Lincoln “You can fool some of the people some of the time …” At the moment the 99% are being fooled and the 1% are taking them.
Why doesn’t the government do something? Quite simple the 1% employ the government, the government does as they are told. They pay bailouts that become bonuses. When they learnt this did they do anything?
Do YOU need to do something about all of this?