
Our indebtedness is like a diet of cheap pizza. It slowly immiserates.
WHEN reading about our $60 trillion national debt or the escalating figures for consumer indebtedness, what is your first reaction? Do you think, “We’ve got to stop spending!” or “Our government is giving our future away to welfare deadbeats and bureaucrats?”
If these are your very first thoughts, let me respectfully suggest that you don’t understand our monetary system.
When you see those mounting figures for indebtedness, the first thing you should think is:
“We are the victims of a colossal swindle. Something is wrong, not with us, and not with welfare recipients, but with the system.”
Indeed over-indebtedness is inherent to our financial system. We can never collectively emerge from what is in effect debt slavery, from cycles of boom and bust, and from the centralized power of high finance which controls public opinion, politics, government and business, we can never emerge from these burdens without significant monetary reform and a new philosophy on the nature of economic life.
But first we have to come to grips with the problem. And there is a major problem. Yes, we deplore Communism and Socialism. But Capitalism as it exists is ruinous too. That’s not because a market economy is bad. That’s not because profit, investment or private ownership are bad. That’s not because Capitalism makes some people rich. These things are good. The problem is two-fold: a monopoly of credit in private, profit-making hands and the inability in the modern economy, which benefits from centuries of labor-saving innovation, for income from labor and savings to match the costs of production. These defects in the system are causing misery in a world that actually can produce enough goods and services to give people, all people, the basic necessities and free them from crushing fear for the future.
Our financial system is out of touch with reality. Our usurious monetary system is strangling family life, but it doesn’t have to be that way. Someday people will, let’s hope, look back on this era as they now look back on the pagan slavery of Ancient Rome. They will wonder how people ever could have put up with such widespread financial oppression, with its attendant social conflict, and how they were ever fooled into thinking they benefited from what the writer E. Michael Jones calls “state-sponsored usury.”
Let me offer some background from a few critics who have stated the problems. I’ll return to the subject in future posts with more from those who have studied these issues and suggest solutions you don’t hear about from our politicians or the mainstream media.
First, most people don’t understand how money is created and circulated. Though Congress is vested by the Constitution with the power to create money, it is actually created by private banks who then loan it out at interest: Read More »