US Money Chapter 6 – Consequences


Consequences 6.56 Consequences (2)

Our money system choice has consequences. In this Chapter, I make the case for changing our money system to one that more closely matches the values we champion. The first five chapters of this book have been explanatory…

Consequences 6.57 Glory be to exponential growth (2)

We glorify exponential growth. Our current system plans to expand the money supply by 2 percent to 3 percent more than a stable money requires. The economy must grow to accommodate the ever-growing money supply. This me…

Consequences 6.58 Increase Debt (2)

Debt creates our money and the supply must expand, so debt must increase. To make this growth possible, bankers can create as much money as the number of available borrowers allows. Remember the exponential curve of our…

Consequences 6.59 Keep population growing (2)

More people means more people borrow money. A growing population absorbs some of the exponential increase in the money supply. Over the 20th century, the US birthrate slowly declined from 25 births per thousand in 1915 …

Consequences 6.60 Increase spending: shifting from good citizens to good consumers (2)

When we have a system growing the money supply by eight percent every year, and only a 3–4 percent increase in population and productivity, we need to get creative about ways to absorb all this money. We must consume mor…

Consequences 6.61 Welcome black holes (2)

Look at the slope of the exponential curve. Our rate of money creation means roughly half the new money created is more than a healthy – rather than feverish – economy can absorb. There is not enough population growth, n…

Consequences 6.62 Hard times: by design (2)

Our money creation system creates hard times by design in several ways. It creates artificial scarcity which results in a highly competitive, fear-driven economy. And, unfettered exploitation of natural resources creates…

Consequences 6.63 Cycling from Boom to Bust (2)

The exploitation that creates hard times is easy to sell and rationalize when the economy constantly cycles from boom to bust and jobs are of critical importance to so many people. Boom. Bust. Hard times. Repeat. This in…

Consequences 6.64 Testosterone fueled (2)

Our financial sector is primarily a male bastion. When I started working on this book, no more than 5 percent of the people taking risks in our financial markets were women. In 2018 Reuters reports that women account for…

Consequences 6.65 Speculation reigns (2)

What is the impact of having a money system that constantly cycles between economic boom and bust? It unbalances the marketplace, making prices more volatile and speculation more prevalent. The privileged have the power …

Consequences 6.66 Everything costs more (2)

High prices make for hard times. Let’s review how much of your daily effort goes into feeding the money-financial wealth transfer machine. Consider the personal costs that are clearly defined: Interest on your debt – …

Consequences 6.67 Loss of common wealth (2)

Our situation is grim and depressing and needs to be addressed NOW. Our common wealth is deteriorating and it guarantees our money. We are losing our natural, cultural, social and economic resources. For most of the las…

Consequences 6.68 Private wealth transfer system: from the 99% to the one percent (2)

Our current money system is designed to shift wealth from the people who produce goods and services on Main Street to the bankers and financiers who have the privilege of creating new money for our nation. The system is …

Consequences 6.69 From common wealth to private wealth (2)

The previous section considered how the wealth of individuals is transferred to the wealthiest tiny percent. Let’s consider how publicly owned wealth is transferred to private wealth of the wealthiest Americans, too. Th…

Consequences 6.70 Innovation is compromised (2)

Innovation is America’s golden goose, and our wealth transfer money system compromises this key to our prosperity. Too much money is a benefit as well as a burden. Benefit When there is more money than the economy needs…

Consequences 6.71 Plutocracy: rule by a wealthy few (2)

The US is not a democratic republic. It cannot be. Big Money rules. We are now an oligarchic plutocracy or plutocratic oligarchy, whichever you prefer to call it (rule of a wealthy few). We gave the ruling power to a cab…

Consequences 6.72 No ‘of by and for the people’ (2)

Our money system makes a government of, by, and for the people impossible. We are not now created equal in the eyes of the law. However, we still have our Constitutional authority to elect people to leadership who will r…

Consequences 6.73 No free market (2)

The people with the power to create our money and rule say they believe in a free market. They invest billions to promote their idea of a free market, which shouldn’t be necessary if the idea is truly beneficial to all. …

Consequences 6.74 Idolatry of money (2)

This disposition to admire, and almost to worship, the rich and the powerful, and to despise, or, at least, to neglect, persons of poor and mean condition, though necessary both to establish and to maintain the distinct…

Consequences 6.75 Moral hazard (2)

When people are not held accountable for bad behavior, it encourages more bad behavior. This is called moral hazard. This is one reason we have laws to punish harmful behavior. However, we deliberately remove consequence…

Consequences 6.76 The end of the road (2)

The US economy Our money system is going to collapse and take the economy with it. That is the system. The downturn is past due. We’re heading off the chart of the exponential curve of debt and money creation. Over the t…

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