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OpEdNews Op Eds    H2'ed 7/12/15

The Great Unbinding Part 1

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And the low priests chant, "Market forces. Market forces."

Due to their over-riding need for financial efficiency -- cut money costs and maximize the quantity and the money prices of goods sold in order to maximize money profits -- money-seeking industrial corporations are financially compelled to scarify and waste the Earth and minimize the wages of humanity's work.

Businesses must extract more money "out" of the world in sales proceeds, than they invest "into" the world as their costs of production; in order to earn money profits. Businesses' money costs are humanity's money income. In order for businesses to profit and survive, humanity must buy business outputs for more money than humanity earns by working to produce those outputs.

How can humanity spend more money than it earns, to keep the profit-needing industrial economy alive? By taking on government debt and consumer debt, of course. Bank-issued "credit" provides the additional spendable money for businesses to earn as their profit. All credit is owed as debt. How can humanity ever repay this money debt, if all its money income is already devoted to supporting the money-needs of the industrial economy? Humanity can't repay its debts, of course.

"Sinners. Doomed. Sinners." Chant the low priests.

Even banks are ensnared by their need to get more money "out" of the world (loan principal repayments plus interest) than they create and lend "into" the world (loan principal). Loan principal is a bank's cost price. Interest is the bank's "markup", which becomes the bank's income and profit. Banks, after all, are profit-seeking businesses too. Without profits, banks go out of business. So bankers must ruthlessly demand the payment of arithmetically unpayable debts owed by sinners.

Is it "rational" to demand that people perform acts that violate the rules of arithmetic? Must the laws of physics themselves bend to serve the harsh commands, the shrill demands of banker arithmetic? Does money make the impossible possible?

"Mysteries of the faith", explain the low priests. And they stoop to ponder upon the sacred symbol $, whose magic spell keeps the low priests in their innumerate stupor.

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I spent my working life as an independent small business owner/operator. My academic background is in philosophy and political economy. I began studying monetary systems and monetary history after the 1982 banking crash that was precipitated by (more...)
 

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