Question- what do you call a man made belief system that is mutually agreed to as being valid, but has no relationship to real life cause and effect, that is supported, protected, and defended by all, and uses it's own existence as proof of it's validity?
We have a fiat currency, the "value' is arbitrarily assigned and has no intrinsic worth. When the Fed prints more money it is actually printing debt- as the only value the currency has is derived from the promise of return over time with interest.
Debt is the promise to return value over time with interest for a product or service used today. In this case the product is money itself. Money and debt have become the same thing.
Currency is a mutually agreed to symbol, with a mutually agreed to value. Currency is a place holder for value, it is not, cannot, will never be, value itself. Today's currency is based on debt, the promise of return of value in the future for goods or services received today. Having no value in and of itself, it borrows value from tomorrow. The buying power of today's dollar is an arbitrary figure, with no relationship to real value.
Money is what poor people use to pay for things like the mortgage, the rent, utilities, food and clothes for the kids. In other words- we're using debt, to pay for our debt. Wealth, on the other hand is the acquisition of resources- which have a real value.
The TARPs, the bailouts, all the taxpayer funded welfare being funneled into banks and insurance companies and the housing market are being used to artificially support inflated markets. The truth is that all these institutions are upside down- the debt owed surpasses the real value in all of them.
In very real terms, if you're fortunate enough not to have been foreclosed on, you're locked into years of debt in order to pay for a home that is worth one third to one quarter of it's real value. Currently the debt surpasses all real value to be had.
This is what happens when supply and demand are removed from the market place. This is supply-side voodoo economics, in your home and in your pocket. Value is borrowed from tomorrow until there are not enough tomorrows.
It's all made up. And no one knows how to fix it, because it is a fiction removed from real life criteria of empirical knowledge and not held to the standards of cause and effect. It is a religion, a mode of behavior, a mind set.
The problem isn't that there's not enough money. There's lots and lots of money. It's just that a handful of people are getting all of it, and they're using it to buy things of real value, passing debt on in exchange for value today.
The problem is that there's too much debt. Way too much of it. Remember- the debt is manufactured, a construct of the human mind. When the Fed prints money it is performing a sorcery- it is taking pieces of paper and investing those pieces of paper with value. The value is being magically transported from the future, promises made today that over time the value not present in the now will be replaced with real value.
We accept without question that it is normal, fair, right- even moral- that a person who has enough money can buy resources like oil, or land or water, and own the rights to such things as energy or food production. In this case they are trading in those place-holders for value- which we call money- for things of real value- which we call resources.
That's a neat trick. "Here, I have this stack of debt, this bundle of promises, I'll give it to you for the oil under your property. Don't worry, I'll sell it back to you- piecemeal for a profit." There are many examples of this sort of double think, this illusory reality, but consider this one as a prime example of how nonsensical this economy has become: A credit card is nothing more than a pre-approved loan. It's a loan you carry in your pocket. If you use it, you enter into debt. If you don't use it, you are charged a fee for non-use. So you are being charged for not going into debt. "Here, you can borrow this much money from me. You don't want to borrow it? Then I'll have to charge you for not borrowing it""
Every government on Earth is in debt. Over 7 billion human are also in debt. That's a LOT of debt. I have read that the combined debt for all the governments on Earth is estimated to be somewhere between 40 trillion dollars and 65 trillion dollars. These figures do not include personal debt, which is incalculable as it covers the smallest credit card use to buy a gallon of milk up to a loan of hundreds of thousands of dollars for a home or as a start up for a small business.
Let's get some perspective on this number we all bandy about- this thing called a "trillion."
One trillion dollars in new crisp one hundred dollar bills would occupy about 400,000 cubic feet and would fill over 168 forty foot shipping containers. If those forty foot shipping containers were to be placed end to end, the string of those forty foot shipping containers would extend over 1.27 miles.