Thursday, July 24, 2008
a simple question and a simple answer
Here's a quote from Darryl Robert Schoon in Market Oracle -
"In but five decades, the US squandered not only its extraordinary patrimony (21,775 tons of gold), but the income and assets of future generations. Today US obligations, in excess of $70 trillion, are incapable of ever being paid back."
As I've said before, I have no time for impossible riddles. I view economics and monetarism as one of these riddles. Delving deeply into its intricacies will not lead anyone to enlightenment. The only way to get the true nature of the beast is to step back and ask simple questions.
The United States was the world's biggest economy. Its people all laboured mightily and produced untold amounts of everything - food, minerals, products and services. And yet inexplicably the whole enterprise seemed to go out backwards. Somehow all the labour and creativity of the American people left them worse off than when they started. Not only did they lose all that they possessed but they're now massively in hock. Does that make any sense at all?
If Americans had all sat on their arses doing nothing, I'd get it. But they didn't did they? They all worked like Trojans with only their lousy two weeks holiday a year. And now they're all in the hole. How the fuck does that work?
Obviously, labour and resources count for nothing in the face of the control of the notes of exchange. Forget all the gobbledegook, money is nothing more than a medium of exchange. In and of itself it's worthless - infinitely less useful than food, shelter, and tools. And yet magically everything is inverted. Bits of paper are all important and food and shelter has no value.
This is simple, simple stuff. As is the obviousness of the fact that the way things are currently arranged is bullshit. Monetarism is bullshit. It's a scam and we've all been had. Paying interest, which is to say more money, to those who already have all the money makes no sense. The rightness of our ancestors in viewing the usury of the goldsmiths as a sin, is made obvious once again. Clearly the whole system is fucked and there's only one thing for it. Burn it all down and start again.