HELLO, USELESS EATERS! -- "ARE THE RETARDS READY FOR ANOTHER LESSON?"

THERE IS NO FIX.


Ancient societies, principally guided by some religious dogma, understood the nature of debt. They called it usury, the extension of debt with interest. It was outlawed and for good reasons beyond their religious objections. Common in the minds of most modern people is this concept of usury although it is referred to now as interest. Everyone understands its basic nature and most understand the concept of “compound interest” the mathematical and ultimately parabolic growth of wealth to lenders who invest their interest payments along side their principal, which in turn earns interest and Interest on interest. The simple concept that turns a single dollar earning interest into an infinite amount given enough time. Einstein called compounding interest “the most powerful force in the universe” I want to repeat his words for emphasis...”COMPOUND INTEREST IS THE MOST POWERFUL FORCE IN THE UNIVERSE” amen.

Absent however in this understanding is the fact that it is a two way street. If you are a lender, then Einstein's words are absolute avenues to wealth. You loan money with interest and your wealth will grow at a compound rate, forever if you want until theoretically you would be a gazzilonaire! No doubts, no questions, no argument...everyone gets this and it is fact both logically and mathematically.

BUT WHAT ABOUT THE BORROWERS? Why are the people, companies, counties, towns, cities, states, nations etc who are the borrowers, the entities on the other side of the loans, excluded from the NEGATIVE side of “the most powerful force in the universe”?

For every loan there is a borrower is there not?

For every dollar of interest earned by the lender isn’t there a dollar lost by the borrower?

If every lender compounds his wealth by lending his principal and interest doesn’t every borrower diminish his wealth by an equal amount? Another famous scientist, Newton, proved that for every action there is an equal and opposite reaction, does that not apply here? Of course it does but with one dramatic, inescapable, terminal, difference...the capacity to lend and compound wealth through usury is limitless but the ability to borrow and service the debt is finite. That is the singularity of debt. That is the flaw in the model of debt as money. That is the reason there is no fix.

You need look no further than our own national backyard for proof of this. The government, the entity that creates money out of thin air, can literally print an unlimited amount. They can print/create money until the last tree is felled to make the paper it’s printed on. This of course has consequences but that is not the message here. The point is that lenders can lend and compound their wealth without limit but borrowers...you, your town, your state, your company etc cannot and for one very simple reason...at some point, no matter how distant, the burden of servicing the compounding interest exceeds the ability to borrow more.

Look at it simplistically. If you were placed in a foreign country with no job but a dozen credit cards to live on, what would ultimately happen? You would use card number 1 to rent a place to live, buy necessities, a few indulgences etc but you would surely max out the card and be required to use card #2 to continue maintaining your life needs as well as make payments on the first card including the interest. You would continue on for a time using one card after the other with each new usage consuming a greater and greater portion of its limit on servicing the debt load of the previous ones that are tapped out. Eventually you hit card #12 and its entire credit line has to be used to service just the interest (debt) of all the previous cards. You are unable to purchase lunch as all the resources of your last card have to be applied to the debt burden of all previous cards. You have hit the end of the road. Is there a fix? Card #13? No, there is no fix for a life depended on debt creation for consumption. As long as it may take, you eventually hit peak debt where no further ability to borrow is possible and even if it were the the compounded interest requires that all of the new debt goes to servicing the old. Peak debt.

The problem California faces, Latvia faces, homeowners face. And the solutions offered by all those that control the system? More debt. Stimulus from the mythical government money tree forest. Global credit card number 13. Tell me how it ends differently for the world at large than it does for the example i posed above. It does not, it cannot, there is no fix for a debt based society. It is simple logic and simple mathematics. It is undeniable, irrefutable, flawless and guaranteed.

We, the world, have embraced fractional banking, usury, debt as money, debt as a means of consumption as the foundation for our society. I have clearly demonstrated that it is an impossible tenant. That it has limits and bounds and is unsustainable is undeniable. We are in the fix that we are in now because we have hit global credit card #12 and we can’t service the debt we have let alone create more to feed the cycle that leads to peak debt.

All efforts to create more debt to return to “normalcy” will fail. Mathematically fail. California borrowing from the future will delay the inevitable, Latvia getting a new loan to pay off the old will buy them time, a homeowner getting a bailout from the government who creates more debt to do so will save a few temporarily but there is no fix.

The system, created by bankers and power brokers and abiding lawmakers is fundamentally flawed. It transfers wealth, impoverishes the debt slaves and ironically destroys themselves when all that compounded interest they view as wealth vanishes in default by the borrowers who, at peak debt, default. There is no fix save a return to a world of outlawed usury but that is an impossibility in a world of 6 billion. There is no fix.


FOLKS WAKE-UP,

THIS TYRANNICAL-MARKET-SYSTEM IS NEARING THE END OF THE SO-CALLED 'CAPITALIST CYCLE'

WHERE THE RESET BOTTOM LAY ON THE COLLAPSE OF THE GLOBAL MARKETS AND A WORLD WAR,

BUT THERE IS A SOLUTION, "THE NIXON SOLUTION!"