What Is Wrong With Our Economy?
"The modern banking system manufactures money out of nothing. The process is perhaps the most astounding piece of sleight of hand that was ever invented. Banking was conceived in iniquity and was born in sin. The Bankers own the earth. Take it away from them, but leave them the power to create money and control credit, and with the flick of the pen they will create enough deposits to buy it all back again. However, take this great power away from them, and all the great fortunes like mine disappear, and they ought to disappear, for this would be a happier and better world to live in. But, if you wish to remain the slaves of Bankers and pay the cost of your own slavery, let them continue to create money and control credit."
-- Sir Josiah Stamp (Director of the Bank of England in the 1920's, reputed to be the second richest man in the British Empire at that time.)
Ask yourself why we should have such poverty in the land of plenty when technology has brought such incredible production leverage in agriculture and industry. If we ran our economy efficiently, we would need less than 10-20% of our workforce to produce all of our nation's goods and services. There are fundamentally two problems with our economy.
1. The first, and by far the biggest, problem is a
fundamental gap or shortage of purchasing power.
We call this THE GAP.
2. The second problem is unjust usury.
Let us first explore The Gap.
The wealth of the nation is not money. Money is just a piece of paper or a record in a computer file. Our real wealth is the goods and services we produce year in and year out. As that wealth is produced, wages and dividends are created to reward our productivity.
The goods produced and services offered need to have a price set that will allow producers to pay all their costs and earn a profit. That price is comprised of two important components --- (a) money paid as wages, earnings, profit and dividends, and (b) all other costs.
If we call the wages the A component and the other costs the B component,
The following diagram illustrates The Gap as well as our Solution:
So how big is this gap in the real world?
We will now explore Unjust Usury
As mentioned earlier, the second problem with our economy is unjust usury. Almost all money that comes into existence is issued as a debt to someone, and it must eventually be repaid. This debt takes the various forms of money that banks loan to governments, consumers and corporations to fund new issues of stock, mortgages, car loans, various forms of credit, government bonds, treasury bills, etc., etc. The problem is that interest must be paid on this debt; however, the money for that interest was never issued. Thus the pool of money loans is like musical chairs where somebody will eventually come up short. You can't issue a dollar and demand repayment of two without also creating and issuing the second dollar. This is the primary cause of bankruptcy.
It is critical to understand that the first problem, The Gap, is the real problem with our economy; however, it is the second problem, debt slavery, that everyone can see. This allows the "powers that be" to keep people in darkness because very few have successfully connected the dots. If you can grasp this one simple fact, you will forever be immune to economic deceptions or falling for schemes that lead right back into debt slavery.
It has been said, "Are you a slave? Then be a good slave. However if you can be free, be free!" It is obvious that we have been content to be slaves up to now. The solution to the problems of our economic system is actually simple. Freedom from this economic slavery is not hard to gain if enough people can wake up and take appropriate action. We just need to set a vision in our mind of what is not working, then set another vision of what to replace it with. As surely as the thought "the wood floats" leads to "we have ships," our new economic vision will lead to a new and better Economic Democracy!
If we think of the way the world's economies work as being like the game of Monopoly where the banker always wins, the only logical conclusion is to simply change the game. The game we all should, instead, play is called the Wealth Pump. In this game, there are no booms or busts, price gaps or taxation. If this sounds impossible to you, there is something you do not know that you need to find out. You need to find out how this new Wealth Pump game works!
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