I came to the idea of the credit card being a huge cause of wealth inequity basically on my own. The more I thought about it, the more it seemed that the hording of great amounts of wealth to the detriment of those without wealth began to get out of control in about the 1950s. I stand by that. But taking a nosedive into the history of money gave me another angle to look at, and that apparently began in Britain in 1931:
The gold standard is not currently used by any government. Britain stopped using the gold standard in 1931 and the U.S. followed suit in 1933 and abandoned the remnants of the system in 1973. The gold standard was completely replaced by fiat money, a term to describe currency that is used because of a government’s order, or fiat, that the currency must be accepted as a means of payment.
Fiat means an arbitrary decree of a governing body. When the gold standard was abolished, and fiat money took over, control of the amount of money that could be printed was lost. The value of money has always been arbitrary, but using a given amount of gold meant it had an understandable value. Money represented an established amount of gold. This is no longer true.
So, with there being an unlimited supply of money, based simply on how long it took to print or coin money, wealth became a game, and only a select few were allowed to play it. And play it, playing with money, is what they did. Then add in the completely uncontrollable idea of credit, with its concomitant interest charges, and money did not even have to be printed to be, in any degree, real. As I said last post, money became just numbers on paper, and then just numbers in a computer program. There is now more money existing only inside computers than there is printed or coined money. When we buy on credit, our only limit is how much credit someone allows us to use. Add on interest paid to use that non-existent money, and we end up paying more money than the already profit-driven value of the product that we bought is worth.
There is more debt in this world than there is money to pay for it!
This brings me to the first step of Conscience Capitalism, and that is to begin to level the playing field. In our present economic cultures, the field of play is tilted at such an extremely sharp angle, metaphorically around 88 degrees–2 degrees off vertical, that most of us here at the lower end will never be able to climb up to the higher end. And this is done intentionally by those people who are already at the top. We are trodden down so the wealth owners always have work-slaves to create even more wealth for them–wealth they cannot ever use.
How to begin to level the playing field? Call me crazy, call me daft, call me anything you like, but Step One is to abolish all debt. Legislate it right out of existence. We cannot afford to repay it, and the wealthy have no need for us to repay it. Debt is doing no one any good, so get rid of it. And, if the politicians refuse to serve the people in this way, force them to do it. Run our credit up as high as we are allowed, and then we inundate the court system with bankruptcy claims. Grind the economy to a halt. There are 8 billion of us, and maybe a million or so of them. If we stop paying our debts, they cannot stop us! They will not even be able to arrest us, because there will be no wealth police to try. Wealthy people have no idea how to do their own dirty work. There will be no value in it.
Just to be clear, when I say abolish all debt, I am not just talking personal debt, but all public debt too. Our governments all owe money to someone (exactly who is unclear!). We call this the deficit. Remember, it is not us the poor workers who create this debt, it is the wealthy who spend their money on our behalf! What a load of bullshit! What they are doing is holding us interest-hostage. The largest amount of our tax dollars goes to pay the interest on the money our governments owe. But who gets these interest payments? Certainly not us. We are the public debtors, on top of our own already impossible-to-repay personal debts. And this is where our tax dollars go. Not the tax dollars of the wealthy, because they are given tax reductions on top of loopholes on top of books cooked to hide the income the wealthy are actually taking out of the economy, while telling us they are putting their money into our economy.
The greatest crime there is against us work-slaves is not just holding us down, but charging us interest compounded on interest compounded on interest to keep us down. The money charged for using money is more than any government can afford. And the myth that governments are trying to reduce the public debt to zero is just so much poppycock. The more a government owes, the wealthier the already too wealthy become. So, all debt, personal and public, must be eradicated without prejudice. Thus the playing field begins to level out.
That is just Step One. More will follow.