An obvious flaw even of the attitude of this purposely narrowed scope, is that we are seeking only to offset negatives. Why is it right not to instead seek to eliminate all obstructions or encumbrances, particularly if any obstruction or encumbrance is unnatural, and itself has never been justified?
Is it right that we prosper to the full extent of our willingness and capability to incorporate available resources into production? Or is it right, that all the while we remain capable and willing to incorporate available resources into production, that some artificial irregularity unjustifiably obstructs the whole world from doing so?
In response nonetheless to the one mere facet he raises, Mr. Krugman reassures us that we don’t have to worry about falling short of an expiring time frame, because the present downturn will surely outlast fruition of eventual benefits, if any — if we survive so long, if the eventual benefits are enough to offset the bad, and if we can even afford the products of those eventual developments after however much longer the failing monetary system further destroys our credit-worthiness.
As I explain again and again throughout these pages ([url=http://perfecteconomy.com t=_blank]http://perfecteconomy.com[/url]), any purported economy subject to interest ultimately terminates itself by itself, irreversibly generating ever escalating sums of debt, until that system inevitably generates a terminal sum of insoluble debt.
In any such system, the real creditors remain the real producers of wealth, who are asked to accept a promise to pay for their production. A central bank merely creates the promise of the debtor at virtually no cost whatever to itself, and then, having intervened unjustly upon every such transaction, demands interest from the whole of the circulation. There is no risk whatever, because the promise to pay of the debtor is created without cost.
But because the whole monetary obligation [principal and interest] of all the currency [principal] so introduced to circulation therefore exceeds the circulation from the outset, it is mathematically impossible for the subjects of the system to continue servicing their obligations without re-borrowing what they pay against these obligations, out of the general circulation:
1. What they pay against the principal therefore must be re-borrowed; and, by the nature of the system of unearned profit, therefore whatever they pay against principal is re-borrowed as a subsequent sum of debt, equal to the previous.
Thus to whatever degree the subjects of the system are forced to re-borrow principal to maintain a vital circulation, it is mathematically impossible to pay down the sum of debt.
2. Whatever they pay against interest and must re-borrow [as new principal] to maintain a vital circulation therefore, increases the sum of debt.
Thus the sum of debt increases so much as periodic interest on the sum of debt.
3. Therefore, because they must maintain a vital circulation, the sum of debt inherently and irreversibly increases at an inherently escalating rate of ever greater increments of periodic interest on an ever greater sum of debt.
Inevitably then, because this multiplication is in proportion to the sustaining circulation, and because ever more of the circulation is dedicated to servicing debt — leaving ever less of the circulation to sustain the true industry which is obligated to do so — inevitably, every such system terminates itself under an insoluble sum of debt it can no longer afford to service.
All the artificial sustention in the world cannot save that system from its own end then, particularly as the escalating rates of inherent, irreversible multiplication of debt become so monumental.
So then, do Mr. Krugman’s assertions prove the course of exacerbated, further deficit spending, itself increasing that multiplication of indebtedness?
After all, any certainty that we can accomplish any goals of research, development, or infrastructure repair, maintenance, or re-building, itself certifies that we are indeed capable in every other way to accomplish these things, but for the very obstructions imposed by the purported economy — imposed then, and still existing for such illimitable profit of the privatization Mr. McCain and those he represents stand for.
There is no other preclusive factor but this illimitable multiplication of unearned taking by those whose unmitigated gutting of our republic assures its mortal end.
Next Page 1 | 2 | 3 | 4 | 5 | 6 | 7
(Note: You can view every article as one long page if you sign up as an Advocate Member, or higher).
