The following article responds to comments on the Information Clearing House, Naomi Klein article, “Wall Street’s Bailout is a Trillion-Dollar Crime Scene.” You will see in the comments that I made several other responses. This response is to the following quote:
“The solutions to all our problems of debt could be solved with one clear edict… Impose a permanent moratorium on all debt concerning home ownership, supply each human being who has no home with a home, and wars will end, no mortgages will be necessary, and we will live our lives trying to make the Earth a better place for all, including all other species that share life along our own.
[end, anonymously posted quote]
The problem is not debt.
There’s a huge faction on the web who now hold to this flawed idea. Many of them descend directly or indirectly from the so called Debt Virus theory, which was stolen from my work by an “author” (Jaikaran) who doesn’t even understand the process so much as to associate blame with cause, versus consequence.
The first page of “Jaikaran’s” book borrows my “Parable of Perfect Economy,” not even understanding it is not actual history (in its entirety), and only obfuscating it so much as to try not to appear to plagiarize. Evidently, he leaves his readers so confused that they assume too that debt is the issue. As a consequence, many further false authorities associate the present specter of insoluble debt with fractional reserve policy, or the fact money is debt. Neither Jaikaran or his readers solved the problem; and even as he so obviously studied the solution in my work, Jaikaran so misunderstood the fact of a singular solution that he could not even sufficiently convey it to his readers.
The answer is not socialism (as suggested by the quote), and the fault of the monetary system is not debt.
We must ascertain the fault if we are to rectify the system. Many people assert it is impossible to perfect a monetary system. Why, or why not?
I spent practically 15 years at this question, at first realizing that obviously we can perfect certain aspects, and ultimately realizing that in fact any historical monetary system has but few powers to subvert the natural laws we would abide by if it were not that such systems are *always* imposed upon us for the purpose of exploitation, exercised through 3 classes of categoric faults: 1) inflation and deflation, 2) systemic manipulation of the cost or value of money or property, and 3) inherent, irreversible, terminal multiplication of debt by interest.
All iniquities of these historic systems of exploitation belong to these three classes of categoric faults, because the only powers these systems have are to bastardize the circulation upward or downward ( inflation/deflation), and to obligate us to maintain a circulation by re-borrowing principal and interest as subsequent sums of debt, which therefore are perpetually increased so much as periodic interest on an ever increasing sum of debt, until such a sum of debt exists that we can no longer afford to service it ( inherent, irreversible, terminal multiplication of debt by interest).
As systemic manipulation of the cost or value of money or property is imposed by any possible *combination* of the first and third faults then, a monetary system can be perfected by simply solving inflation and deflation, and inherent, irreversible, terminal multiplication of debt by interest.
So then, mathematically perfected economy is simply the solution of inflation and deflation, and eradication of interest.
Adversaries of solution (or the confused) immediately mutter, well then, who is going to loan money into circulation if it is not subject to interest?
No one, because no one needs to borrow money into circulation *from someone else*; and this is what my Parable of Perfect Economy was about (see our pages).
In nature, the person who buys a $100,000 home with a hundred-year lifespan — who does not have the money to do so — may enter into an arrangement with its producer (who, in all cases is the true creditor). The producer thus may *elect* to accept their promise to pay (”note”).