|
|  |
|
|
|
| |
| Mar 18, 2010 9:25 pm |
|
re: money and debt in today's environment ... |
John Stephen Veitch
| |
James, you write:
"The ruling power borrowing from the Money Power to finance these projects ... elevates the ruler, makes the people feel special."
Creating "money" is authorising an obligation between partners. Calling it "debt" or not doesn't change the situation. The obligation to meet the commitment is what gives "money" value. If the debt carried no obligation to supply goods or to make repayments the "money" would be valueless.
In the short quote above you capture something very ancient, which is still present in modern banking.
I think of African villages, where once a week people sit for hours in the hot sun waiting for an audience with the village Chief. They each get a few minutes to ask for something, and the village chief usually offers them some small "gift" to help in their situation. What's going on here?
The villagers are acknowledging the power and authority of the village Chief. The Chief is exercising his power and authority, and making the village more unified and probably more prosperous. At the same time he is creating a channel through which obligations to do work, or to pay tribute flow back to him.
Think about the Mafia, in the USA. Local people would go to the Don, and ask for favours. The Don has a reputation for being very generous. He gives money away easily. BUT, he asks for an obligation in return, and that obligation is very strictly enforced.
The banks and the government together perform this same function. You go to you bank, cap in hand, asking (begging) for a loan. If you get it you are overjoyed, because now you can buy your house or the new car or invest in your business. But there is an obligation to repay, which keeps you chained to the economy, keeps you working, keeps you busy supporting the system.
So that's what happens. It's not evil, unless power is abused. Sadly power is almost always abused, and the people "in the system" try to cover up the abuse, or are unable to even recognise the abuse occurring.
Easy examples:
Sexual abuse in the Roman Catholic Church.
Excessive rates of imprisonment.
Fraud in the housing market.
The fraudulent failure of retirement savings schemes.
The provision of "free education" to military volunteers.
John Stephen Veitch; The Network Ambassador
Open Future Limited - http://www.openfuture.co.nz/
Innovation Network - http://veech-network.ryze.com/
Building an Open Future - http://openfuture-network.ryze.com/Private Reply to John Stephen Veitch (new win) |
|
| |
|
