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Man started out as a hunter-gatherer. He consumed what he produced. Later, man developed farming and animal-husbandry. He still consumed what he produced. As he got more efficient, he produced more than he needed. He invented barter. In a barter system, you always have something of value in hand. Barter became inconvenient because of the mismatch in needs/wants. He developed various intermediaries to direct barter. The best intermediary was something that the greatest number of people needed or wanted.
Salt was universally needed and, enjoyed widespread acceptance as an intermediary. Hence the word "salary" Eventually, precious metals like gold became the standard intermediary. With the system of intermediaries that had intrinsic value, you ALWAYS had something of value in hand.
With the invention of paper money, you had a claim on something of value. Since the world is full of people who have no intention of working or producing, there is always a great motivation to corrupt the paper money. Once that the production of paper money is disassociated from productivity, the effortless creation of more paper money runs amuck. In a general sense, the number of claims on the fruits of production greatly increase while the actual "fruits" remain the same. This normally causes the "fruits" to go up in value. This price inflation results when claims go up but, productivity does not.
In the age of automation, productivity is primarily constrained by a lack of consumption.
Wages are the connecting link between production & consumption. If wages are lacking, consumption does NOT rise, regardless of productivity.
The bankers are the primary corrupters of paper money. They are parasites, rather than producers. At the same time, they have great control over the growth of the money supply. Since they are non-producing parasites, they have great motivation to corrupt the money supply in their favor.
50% of Americans of working age are not in the labor force. Consumption and the velocity of money are falling drastically. This greatly threatens the credit bubble. The current offered solution is; send free money to people to get them to maintain the credit bubble by making payments.
In the age of covid, the lockdowns have killed confidence. People are hoarding cash and, skipping loan payments. The advent of a second lockdown will make things much worse.
106 million loans are not being serviced. The bankers are inducing the FED to make up the difference. Regardless of stimulus paid to people, they are not going to regain confidence. They are not going to pay mortgages. $1 trillion a month stimulus is now proving to be inadequate.
The other great non-producer, the State, is having equal problems at squeezing out sustenance from the taxpayers. The great Blob State, comprised of many millions of non-producing bureaucrats, worldwide can NOT survive on a shrinking tax base. Parkinson's Law states that this blob will grow by 6% a year regardless of work load. The Western world is being heavily pushed into a world socialism scheme as a panacea for the loss of wages, employment and, the tax base.
The great fault of socialism is that it kills off motivation. The blob State labors away at inconsequential efforts that are all designed to provide a sinecure for people who are unemployable in the private sector. These many millions of bureaucrats do NOT need any motivation other than a paycheck. Socialism looks wonderful to people who never had any motivation to begin with.
Socialism demotivates the actual producers. As the ever-growing demands of the blob state grow, the demotivated producers cut back production. The bankers demand more. The bureaucrats demand more. The whole cadre of non-producers demand more. The whole system goes bankrupt from the imbalance.
The Cuban government just told Cubans to grow food or, starve.
The collapse of socialism generally results in a collapse of the food supply. Man must revert to being a hunter-gatherer.
Salt was universally needed and, enjoyed widespread acceptance as an intermediary. Hence the word "salary" Eventually, precious metals like gold became the standard intermediary. With the system of intermediaries that had intrinsic value, you ALWAYS had something of value in hand.
With the invention of paper money, you had a claim on something of value. Since the world is full of people who have no intention of working or producing, there is always a great motivation to corrupt the paper money. Once that the production of paper money is disassociated from productivity, the effortless creation of more paper money runs amuck. In a general sense, the number of claims on the fruits of production greatly increase while the actual "fruits" remain the same. This normally causes the "fruits" to go up in value. This price inflation results when claims go up but, productivity does not.
In the age of automation, productivity is primarily constrained by a lack of consumption.
Wages are the connecting link between production & consumption. If wages are lacking, consumption does NOT rise, regardless of productivity.
The bankers are the primary corrupters of paper money. They are parasites, rather than producers. At the same time, they have great control over the growth of the money supply. Since they are non-producing parasites, they have great motivation to corrupt the money supply in their favor.
50% of Americans of working age are not in the labor force. Consumption and the velocity of money are falling drastically. This greatly threatens the credit bubble. The current offered solution is; send free money to people to get them to maintain the credit bubble by making payments.
In the age of covid, the lockdowns have killed confidence. People are hoarding cash and, skipping loan payments. The advent of a second lockdown will make things much worse.
106 million loans are not being serviced. The bankers are inducing the FED to make up the difference. Regardless of stimulus paid to people, they are not going to regain confidence. They are not going to pay mortgages. $1 trillion a month stimulus is now proving to be inadequate.
The other great non-producer, the State, is having equal problems at squeezing out sustenance from the taxpayers. The great Blob State, comprised of many millions of non-producing bureaucrats, worldwide can NOT survive on a shrinking tax base. Parkinson's Law states that this blob will grow by 6% a year regardless of work load. The Western world is being heavily pushed into a world socialism scheme as a panacea for the loss of wages, employment and, the tax base.
The great fault of socialism is that it kills off motivation. The blob State labors away at inconsequential efforts that are all designed to provide a sinecure for people who are unemployable in the private sector. These many millions of bureaucrats do NOT need any motivation other than a paycheck. Socialism looks wonderful to people who never had any motivation to begin with.
Socialism demotivates the actual producers. As the ever-growing demands of the blob state grow, the demotivated producers cut back production. The bankers demand more. The bureaucrats demand more. The whole cadre of non-producers demand more. The whole system goes bankrupt from the imbalance.
The Cuban government just told Cubans to grow food or, starve.
The collapse of socialism generally results in a collapse of the food supply. Man must revert to being a hunter-gatherer.
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