P < P+I is the simple equation that describes the forced-growth dynamic of pyramid or Ponzi scheme debt-money. The only differences between Bernie Madoff’s short-lived Ponzi scheme and fractional reserve banking across the globe, are the scope of operations, available man power, and the fact that the latter is state sanctioned. Because the global monetary system uses as much of the planet’s population and resources as it can to fuel its mathematically necessary growth—rather than the wallets of select Hollywood actors in Madoff's case—it takes longer to collapse totally. There are mini-collapses along the way, but new fuels are found in new lands, and the process boots up again. In periods of ‘growth’—better called expansion of the money supply—people do well, there are jobs to be found, prices seem stable enough, and so on. In periods of contraction unemployment grows, there is price volatility, and times are hard.
Banking is a pyramid scheme—if it's not growing, it's collapsing—networked and interconnected across the globe. Money as debt is what it sells. That everyone must have money to live decently adds spice to the brew, and gives the controllers and owners of the money-producing mechanisms enormous power, which they secure via a welter of propaganda, media ownership, secrecy, a ‘high priesthood’ of obedient economists, and sufficient control of the educational agenda too. Money influences almost every decision made in society; “Shall we do it?” “I don't know, how much does it cost?” Hence, if you control money, you control society. Not in fine detail of course, that’s impossible, but the ebb and flow are yours to steer, for a while. Nothing grows forever.
Money is not wealth. Money is not wealth. Learn that well. That we see money as wealth, or even a representation of wealth, is part of the propaganda, part of the myth we must penetrate. Money is a control medium, a medium of control more than of exchange. If you can create it out of thin air as debt, you can have as much of it as you want, certainly more than you could ever spend. Owning houses and jets and cars is quickly boring. Controlling nations and billions of people is a game of ever changing variety, and remains for this reason sufficiently challenging to keep a talented psychopath nicely entertained. Control, generating fear, wielding power, causing war, being saviour and destroyer, God and Devil, that’s what money is all about. That’s the game.
Money is the force that keeps the pyramid together. Money builds the pyramid. It is an energy of symbolic power enabling a vortex-like flow from the bottom to the narrowing top. It is a controlling idea we must learn to pierce if we want to grow up as a species and experience mature 'freedom.'
Now to Franz Hoermann’s “The End of Money”. (I have been in contact with the Professor and have his generous permission to translate excerpts from the book. He has also invited me to join him and his team in establishing an Internet portal on economics, something I have long wanted to do on my own. I shall keep you posted on developments.)
Any system not resting on physical foundations, whose operation depends on the belief of its proponents, is in truth a religion. Should this religion then be insisted upon by the state—the creation of debt-money as the legal medium of exchange—it is then a state religion.
But because the public is told none of this, people of today's so-called free market are actually in a secret state religion, which, without their knowledge and consent, determines the shape of their lives. Accountants, auditors, economists and every board contributing to the laws of this system, are therefore not scientists of our society, rather they are the secret priests of Money Religion, who ensure the uninitiated will forever subjugate themselves to their senseless, exploitative and harmful rituals.
[ … snip … ]
[On establishing the value and costs of things via standard accountancy.] All these questions are not, scientifically, unambiguously answerable. Sir Karl Popper would speak here of non-falsifiability, that is, the impossibility that other scientists can refute the allocation of future cash flows to individual assets [e.g. machine or let flat or increase in value of property]. The allocation of revenues to the individual components of a produced good always occurs arbitrarily. Each possible theory for such allocation can be supported by some arguments, but undermined by others. Hence, such theories of value are never falsifiable and for this reason are not part of empirical science.
[ … snip … ]
Today's money-values [prices] arise in the Market, allegedly from the Law of Supply and Demand. Even money itself is traded on the Market. But this means the measure of value itself possesses a variable value. A meter on the other hand is a length but does not possess length. Were the meter as a measure of length to behave as do the euro or the dollar as measures of value, then it would lengthen when measuring longer boards—because of higher demand—then shorten when measuring shorter boards, because of lower demand.
It is immediately clear to anyone with sound common sense, that is, to those without a formal education in economics, that, with this sort of measurement methodology, you couldn't even build a shed.
Money is not wealth. Value cannot be measured because it is relative and subjective. There can be no science that measures value, or beauty, or stink, or the sound of colour. Until economics concerns itself with planetary carrying capacity and sustainability it will remain propaganda of money value, money being a medium of control. The devise of that control is P < P+I. While we, the victims of this long, ongoing hoax, continue to allow The Great They to use money as sole judge of our worth, of the worth of everything, we subjugate ourselves to a myth which secretly enslaves us and keeps from us the real power we all possess.
“None is so hopelessly enslaved as he who wrongly believes he is free.”