SO instead of having a financial system that simply reflects, in a one-for-one correspondence, the production capacity and the flow of real wealth, we have a financial system that systematically underestimates them and that transforms money into a ‘rare commodity’ and finance into the determining factor. The symbol of our wealth, and of our ability to produce it, becomes more important than the reality of our wealth. And finance, as an institution, becomes master instead of servant, because, in order to overcome the artificial shortcomings and constraints that finance creates, we must appeal to finance on its terms and in accordance with its interests.

This artificially induced dependence reverses the order that ought to exist between the financial system and the physical or real economy.

In sum, the financial system is not a humble servant of the physical economy, of what we need, and of what we want to do with the physical economy. Instead, the physical economy, the real economy, is subordinated to the financial representation of the real economy. And that’s the general problem with the economy. 

If we were to imagine a dog representing the real economy and its tail representing the financial system, the current financial system, because it is structurally dishonest, allows the financial tail to shake the dog of the real economy. But this is a complete perversion of the due or correct order, the order required for healthy functioning. In this order, the dog of the real economy is master of the situation, the financial system is subordinated to it and the dog stirs the financial tail as, when, and where required.

—- Oliver Heydorn, “Social Credit: The Basic Principles”

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