NEW MATH: Fiat Money + Capitalistic System = Middle Class Ruin

Posted: November 11, 2010 in Uncategorized
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I don’t know how to fix the economy, eliminate greed and corruption or establish liberty and justice for all. But I can do research, draw my own conclusions and write.  For those of you who are too busy working multiple jobs just to tread water, I’ve summarized my research below:

In an article called “Why do people have different opinions?by Dale Husband (centrist liberal), from Friday, January 16, 2009 he said “One of my most basic axioms is that there can only be one truth and one standard of right and wrong as far as empirical facts as well as ethical standards go, but that the limited vision and knowledge of human beings makes us unable to know absolutely what that truth or standard is; we can only approximate it in our minds.…I believe that we humans, for all our intelligence, are still limited in our minds as well as our perceptions of reality. We can only know so much or sense so much and thus when we form opinions based on our knowledge and perceptions, we are prone to error. The problem comes when clashes between people with different opinions occur. Often, debates result in which efforts are made by both sides to show that the other side is in error. Usually, however, most supporters of both sides refuse to budge in their positions, and so the debates prove fruitless.”

In an article called “The Value of Dissension”, posted by Ben Tomhave on September 16, 2008, discussing consulting issues, he says “There seems to be a fallacy in American politics and corporate life these days that conformity and blind acceptance of the prevailing BS perspective is the apex of social evolution. Nothing could (or should) be farther from the truth. The fact of the matter is that conformity and the oppression of dissent is a fundamental threat to the very foundations of this society. It undermines creativity and innovation, causing an erosion not only in social values but also in the ability to solve problems.  The prevailing problem, as I see it today, is that the powers that be believe their way is the only way, and that anybody who dares question that way is in fact threatening the basis of their existence…This suppression, repression, oppression of progress is a subversive manner of attacking dissenting opinions. Innovation should introduce creative solutions to complex problems that ultimately frees us to focus on other problems. The only way to evolve is to build on previous evolutionary steps…Where is the beauty of the simple solution? In the case of politics, it’s very easy: throw the bums out, bring in different bums who hopefully have different allegiances or are at least not as sold-out as the last bums. However, we need to be wary of the violent resistance that the status quo may throw in our face. Never before do I recall seeing such violent opposition from the establishment – usually it’s the other way around! It’s a sad state of affairs when the threat of social evolution is viewed as so great that the establishment will violently work to oppress the next state of being. Perhaps this belies the importance of the underlying corruption and the false belief that power is everything. Perhaps the solution to such oppression is to find a way to remove the power without having to directly confront the status quo.”

I watch the 24/7 news cycle in disbelief as media points viewer attention to a few, insignificant and/or deceptive stories.  This coverage elicits strong emotional reaction rather than providing an honest overview of global concerns and facilitating solutions.

In “Reflections on a Largely Forgotten Book: Herbert Schiller’s The Mind Managers” (1973) by Paul Street, he writesThe main media institutions are owned and operated by giant profit-based state-capitalist super-conglomerates like General Electric (owner and part owner of NBC, A&E, American Movie Classics, Biography Channel, Bravo, CNBC, Court TV, History Channel, MSG Network, MSNBC, National Geographic Worldwide and more), Time Warner (owner of film and music production companies, theme parks, sports teams, magazines, websites and book publishers as well as Turner Broadcasting), Walt Disney (ABC, Disney Channel/Network, Lifetime Network, ESPN, Classic Sports, E! and more), Viacom (CBS, Paramount, Blockbuster, theme parks, music publishing, book publishing, Nickelodeon, MTV, TNN, and more), the News Corporation (FOX Channel, Fox News, Wall Street Journal, New York Post, 20th Century Fox, London Times, TV Guide, the LA Dodgers, many stadiums, five New York sports teams, FOX Family Channel and more).”

In “Manipulation of The People— The Rudiments of Propaganda” by Andrew P—09/2003 (updated 09/05), he says “Media ownership is central to the manipulation of the people. Manipulate the people, and you manipulate their vote. You either control the media by owning it or by doing favours to those who own it. In the United States, large corporations own the media and these, in turn, receive favours from the Government in the form of influence over legislation and special tax breaks. Worryingly, only five mega-media corporations now control almost all of the US media, which is why the American people are among the most ignorant and brainwashed in the world… As Noam Chomsky once observed, expecting NBC News (owned by the leading “defense” contractor General Electric) to give an objective and un-biased account of world affairs would be like expecting General Motors’s company newspaper to give a truthful and detached account of working conditions in its automobile plants.“

Isolated stories of government and corporate fraud pretend to defend justice when the underlying cause is ignored and forgotten by the sound bite scholars punctuating this generation.  Comedians do a better job exposing media accountability than any consumer advocate group.  See the below links for an example:

Jon Steward and Jim Cramer Part 1

Jon Steward and Jim Cramer Part 2

Jon Steward and Jim Cramer Part 3

I used to be complacent and intentionally ignorant of the whirlwind of despair and injustice plaguing our generation.  I didn’t watch the news.  I believed in Capitalistic ideals.  But lately, I’ve had cause to question and time to research why corruption and greed dominate this planet.  When I researched the effect of economic collapse on the middle class, I couldn’t help but note references to the Fiat system of money under the capitalistic system as practiced today.

Fiat money is money declared by a government to be legal tender.[1] The term derives from the Latin fiat, meaning “let it be done”. Fiat money achieves value because a government accepts it in payment of taxes and says it can be used within the country as a “tender” (offering) to pay all debts. In effect, this allows it to be used to buy goods and services and to pay tax.

I read many articles from google-generated sources but this one, called “The United States Fiat Money & The Federal Reserve Systemby Darryl Schoon on June 23, 2008, sums it up well.   He says “Fiat money is an oxymoron. Traditionally, money has been both a storehouse of value and a medium of exchange. Fiat money exists by mimicking both; but when its ability to do so ends, fiat money exposed for what it is, reverts to what it is—government issued coupons with expiration dates printed in invisible ink…While productivity is doing more with less, fiat money allows governments to do more with nothing. …

The issuance of fiat money by governments is, in truth, a white collar crime; and, as happens when white collar crimes are discovered, a highly visible paper trail leads directly back to the wrongdoers—in this case, the central banks…

Central banks are the mechanism by which society’s productivity is drained and indebted. Credit-based money issued by central banks turns into debt, debt which immediately begins to accrue compounding interest paid by productive members of society, e.g. workers, businessmen, farmers, savers and taxpayers. The interest, of course, is paid to bankers, non-productive members of society.

…The longer a fiat money system exists, the greater the odds of economic collapse. Over time fiat credit money destroys economies because time exacerbates the systemic flaws of credit-based, sic capital, markets.

In fiat credit-based economies, savers are penalized and speculators are rewarded. And while this is welcomed by Wall Street, it is a death warrant for Main Street. In the US over the past twenty years, while Wall Street has expanded, Main Street has contracted.

The shift in America from a productive to a speculative economy is evidenced by the recent growth and dominance of financial “services” companies, e.g. Goldman Sachs, JP Morgan Chase, BofA, Morgan Stanley, Lehman Bros, Wachovia, etc. —their only “service”, of course, is a uniquely destructive and deadly form of “self-service”… It is my belief the next five years will determine America’s destiny. Once seen as a beacon, it is now distrusted and feared and rightly so. Those who bled this nation dry are still in control and the American people, America’s only hope, are not even aware of what has happened; and, if America is to be saved, there is not much time left in which to do so.

The odds aren’t good and Americans, heavily indebted and addicted to credit, are still hoping the Federal Reserve can save them, much as a patient hopes doctors will provide the right medicines, not knowing the doctors are getting kickbacks from the pharmaceutical companies and are skimming prescriptions for their own benefit.

In fiat based economies, time is the enemy and 95 years have passed since fiat money was introduced into the US. In America and elsewhere time is passing and the clock is ticking and recently it’s been sounding more and more like a time bomb.

It is hoped the election of a new president will save America. It won’t. Democracy, once the hope of the world, is now its greatest disappointment. Money—and fiat money at that—has subverted the democratic process everywhere; and today, in all nations, politicians from both conservative and liberal parties dance to fiat money’s funereal beat—in a mockery of democracy’s original intent.”

The author has a long list of credits, available to anyone with a google search engine.  He is one of thousands screaming inaudibly into the tornado mass complacency.  It is frightening to note that he wrote that article before the Wall Street collapse, the bailouts and near double-digit unemployment rates.

My research has pulled me out of complacency and led me to believe that Fiat money + the Capitalistic System as practiced today equals economic ruin for the masses and redirects wealth to the obscenely rich.  If you agree, disagree or want to know more, let your voice be heard.


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