Saturday, 26 April 2014
Slaying Mammon, or Why Your Money is on Fire
It's actually easy to prove that banknotes and coins (and by extension bank balances) are not only not real money, but are actually dis-money, or liabilities leveraged against the holder-user.
Consider a little micro cash-economy. Small traders selling small goods for small margin. The same $10 banknote can get passed around ten times without seeing a bank. Now, what has happened here? Transactions have happened totalling $100, yet there is still only the $10 to "show for it."
That little scrap of paper has compounded its own interest tenfold, but for the benefit of who? This is an important question, a huge question.
The other interesting thing that happens is that all future interest for the participants is extinguished by the use of bank-money. What I mean is that usually, when a transaction is settled using bank-money, the transaction is considered to be over, and there is no obligation or relationship remaining between the participants. No friendship, or recognition of mutual support. Just a "thank you and fuck you" kind of thing, pardon my French.
The conclusion here is that the "real money" is created by the participants each time they trade. If each trader were to keep a personal ledger instead of using notes, they would ledger each transaction and it would pop up as a credit-debt event each time. That ledger entry actually IS the money, just as it is for a bank whenever they create a deposit or loan on their books (which is the SAME THING for them, more on that another time).
However the use of notes erases all memory of any equity involved, which makes sense because banks have nothing to do with the equity of the situation: they have no first-hand knowledge of any transactions. It's all at arm's length, and because you are unknowingly acting as a banker's agent, you too are at arm's length. The whole world is at arm's length. And people talk about feeling isolated - small wonder!
Another way to prove that equity has been erased from bankers' dealing is the accounting equation liabilities = assets - owners equity. Well, with every transaction on the banks' books, assets always equal liabilities. Whatever equity the banks carry on the books is secretive in nature, and equal to no more than 10 or 15 percent. For the most part there is no distinction. Ownership becomes a curse (not necessarily a bad thing, interestingly) and control of the financing is all. And who can argue with that, in a world where a man's home, his very castle, can become his primary liability in mortgages, taxes and sundry fees and maintenance?
The thing to take from this is not that "banks are bad." Even banks do not benefit from the banking system. They are just as tied up as everyone else. The employees all the way to the top are just employees like anyone else, and using drafts like anyone else. The shareholders do not benefit either: they get a dividend, sure, but there's added shares which dilutes it, and plus they're in the same transaction system too. And they likely get ripped off by the board of directors.
It's the system that's leading everyone down a drainpipe. Why is it that only one in every hundred people are considered "rich" upon retirement? It is palpably NOT true that 99 out of 100 people are talentless or lazy. Quite the reverse. In my opinion human genius is more common than water. And there are more two-income households now than ever before, and some of the householders will have two or even three jobs.
It's not even just employees who have the hard time. It's incredibly hard for small business owners, or even big business owners, to survive. We all know the stats about 80% or so going out of business in the first 5 years. And even that other group, the investors, can't make money in this climate - plus they get to tie up all their capital for years for the privilege of seeing it go down in value. Why is this so?
It's the bank-system. With a life of its own, devouring its host. Some kind of mind-virus which starts by dividing people and then conquering. It's like an actual being or organism, like some mythical serpent from an indigenous legend. We created it, and it blinded us with fire so we can't see what it's doing anymore. It creates World Wars, destroys inventors of free energy, and still we stagger blindly on.
Riding the bank-serpent system, the whole thing depends on debt default and increased speed. Everyone's got to make money faster and faster just to stay still, running like the Red Queen in Wonderland, and nobody's allowed to pay their debts in full either. The serpent needs that pledge of more and more future service, till they're all used up, and just drop dead of exhaustion, or loneliness.
So yes - holding onto big bank balances or wads of cash never did anyone any good. There's quite a few films exploring this idea - like A Simple Plan and No Country for Old Men. Oh yes, there's always the bible as well - "Ye have sold yourselves for nothing, and ye shall be redeemed without money." It's best to convert these liability-signs into growth vehicles or give them to charity as soon as possible, like they were on fire. That's what the rich of every age have done. They know there's no good inherent in money - quite the reverse. But there is good in friends, and generosity networks. And so that must be our focus if we are to finally slay the great dragon. We've just had St George's Day, after all.
Posted by Iain at 07:16