Some time ago some white dude in a puffy ass wig Alexander Hamilton decided that we should have a central banking system that issued promissory notes called fiat money and use it as the medium of exchange for goods and services. At the time it was a good idea and helped us built vibrant economies and innovations that brought us where we are today.
However, as with all power comes greed and any centralised system can be bastardised with time. As we outsource our funds and medium of exchange to a select few they would look at ways to benefit themselves by moving the goalposts.
Image source: - moneynuggets.co.uk
We borrow money for things like homes, cars and other consumer habits and banks are willing to give us the money for these purchases which very few of them bring in any return. All you are doing is leveraging your life to the bank and saying for the next 20 years I commit to working for you and splitting my income with you.
This behaviour has become so normalised that even though these bad loans are destroying our retail economy banks can't stop handing them out and people are willing to leverage it for things they really can't afford for some or other physiological fulfilment.
Then we get companies borrowing money and what they do with is create goods and services for us to take advantage of and we pay back their loans through our purchases. Then from that profit, they use that to buy back their own stock inflate the value of their companies so they can borrow more money and the cycle of extracting money from consumers can become more widespread and continue to snip off more of your disposable income.
Then we have the government, the borrowed money to help create a society we can all live in be safe, pay for infrastructure, stimulate business and assume liability for the medium of exchange, fiat money. Governments borrow money from investors and who pays it off? You do, remember that paycheque I mentioned earlier?
Well, it gets a little smaller through things like income tax, VAT, Sin tax, capital gains tax and more.
The world works on borrowed time and the hope that there will be enough suckers in the middle class to produce more people who will continue to be suckers and feed the Ponzi scheme of an economy we have today.
We've all borrowed so much money, cheap money, money that keeps getting cheaper and losing its purchasing power. We've used this money to prop up industries and create bubbles instead of creating wealth and innovation that help the people. The world is so over-leveraged that we have so much debt future generations need to work off its pure insanity.
We say we want a better future for the next generation, for our kids but we keep adding more debt for them to work off, how will they ever get to have a better life?
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