Long term, and unless you are a licensed bankster, the money supply in our existing system is ultimately negative not zero. As the interest charged from the beginning creates MORE debt than there is money. This debt is only temporarily made invisible while the economy is growing exponentially.
This can be seen simply by via the equation P < P+I. Where P represents the new loans and I represents the
total interest paid on those loans.
To prevent the money supply from going negative, growth is needed. Growth is regulated by adjusting interest rates.
Thus, (and this is the historical state of affairs and doesn't necessarily reflect our current state of affairs) when P
2 (new loans) are injected into the system, our equation changes to: P
2 + P > P + I .
As the interest for P
2 is only added incrementally and not all at once we can ignore it early on as it's a small percentage. This is really a very poor way of showing the math, but hopefully you get the gist of it.
The process continues until either the banksters decide to not lend anymore money (that they create out of thin air via the borrowers promise to pay) or until there are no more resources left on Earth to extract that are valuable and hence nothing left to pledge as collateral for the debt. And so long as this music continues to play, more bank credit is put into the system. It's not really money but people treat it as such, so the effects are similar.
Bankers are like slave masters. Being granted the ability to be a banker is akin to being granted sole possession of the earth - it is a grant of aristocracy. The reason how is simple: Bankers have absolute control over trade. Without the 'legal tender' that bankers have sole prerogative to grant into existence, then there is no trade. In order for you or I to be 'allowed' to trade, we must pay a percentage of our labors to them and we must pledge our labors as collateral if we are unable to pay the agreed upon percentage.
Here's the real problem that most people don't get. . . The Earth is FINITE. Eventually we run out of resources and eventually, we MUST default on our promise to pay that percentage. When that happens the bankers will inherit the Earth as most all of it will be put up as collateral as everyone struggles to keep living under this paradigm.
When that day arrives, and if it's not here already then it's not long off, then the money supply will go negative, that is to say that the total debt will be greater than the total assets.
If you are not in a stable and sustainable place you will be pulled under with it. Just as a ship sinking in the sea pulls under those who jumped off, but didn't swim far enough away.
Get together with friends and neighbors and form co-operatives. CREATE YOUR OWN MONEY to trade with, because bank credit will be scarce. Set up you own mini-court to deal with trade issues.
I don't recommend buying gold and silver unless you have your own business established and do not need durable goods. Buy durable goods first, establish a trade-able commodity or service, then invest in precious metals if you don't need anything else. DO NOT speculate!!
Swim fast, swim far little fishes - get away from the sinking boat! Spread the word and don't give up hope, a new world
order is just around the bend.
Have a look at the main site
http://earthsociety.org as well - lots of good information in there and more being added all the time.
Author
