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Old 09-17-2019, 03:18 PM
Danny B Danny B is offline
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Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,848
The parasites over run the producerts

In ages past, the farmer, hunter, herdsman, miner, forester, stonemason, fisherman, et al worked hard and, some of them produced excess "wealth". They traded amongst themselves to acquire things that they didn't produce directly. Their excess wealth was later stored as the most non-perishable items. Normally, metal and stone. As time past, the increasing productivity of the farmer and herdsman allowed some people to work as craftsmen and, build cities. For ease of trade, wealth was denominated in gold and silver. Those 2 metals were a standard much easier to judge than the value of oxhides or food.

Different tradesmen offered their services to the producers. The bankers was an offshoot of the traders. The banker's job was to efficiently and intelligently allocate capital to entrepreneurs. All that he had to work with was the stored capital of the producers.
Eventually, receipts for stored capital were used as a proxy for the actual, tangible capital. They were easier to transport and, less likely to be stolen. Talley sticks were one of the best forms of receipts because they couldn't be forged.
All this time, bankers were limited to capital that had already been produced. Of course, there were exceptions for things like logs at a lumber mill or, crops in the field.
"Money" was limited to promissory notes for tangible items.

The bankers started fraudulently creating excess promissory notes. The modern monetary system was born.
The gold standard was forced on the bankers from time to time to stop them from creating capital out of thin air. Since the banker added nothing productive to the economy, he was forever motivated to cheat the system.
Since the State was also a non-producer, it too was motivated to support the banker. The State traded regulatory advantage to the banker in exchange for the banker buying government bonds. Regulatory capture was born.

Since a parasite recognises no limitations on growth, the 2 major, symbiotic parasites always blew up the system. It is advantageous (over the producers) for the parasites to legislate away,,, inflate away the wealth of the producers.
The '87....'01...07 crashes were in the private sector. Stocks, tech, real estate.
Armstrong says that the upcoming crash will be in the Sovereign bond market. Though, corporate bonds are looking equally bad.
The 2 mega parasites are creating megatons of new debt. The general belief is that producers will repay this debt as payment is slowly siphoned off from production & consumption activity.

Armstrong writes convincingly that government will collapse. The State is completely entwined with the other mega parasite. ALL the recent stimulus is channelled through the banks. U.S. FED GOV spends 24% of the gdp. How could there be a total collapse of governments worldwide without a complete collapse of the banks?
The parasites are strangling the producers. The producers are falling in numbers. Consumption and commerce are falling. The parasites continue to inflate the debt bubble to compensate for lost profits and taxes. 10 years of stimulus channelled through the bankers has failed to bring a return of commerce & consumption.
The ideas of MMT and UBI are proffered to channel money directly to the consumer to revive the economy.
At one time, the bankers was employed to efficiently and, wisely allocate stored capital to entrepreneurs. The money renters of today are throwing heaps of debt at any stupid idea that they can find. The bankers will fight UBI and MMT because it sidelines them. The rise of automation sidelines the worker. The bankers will call MMT, "communism".
With, communism, the worker is demotivated because the fruits of his labor are stolen. The parasitism of crony capitalism accomplishes the same result. The parasitism of over-taxation is equally destructive for the motivation of the producer AND the entrepreneur.

The bankers and bureaucrats are the direct enemy of the producer. The bankers use continuous price inflation to keep us from dropping out of the labor force. MMT would change this. The battle for control will not be a short one.
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