The Money Deception: Unveiling the Truth about Banks and Governments

The Money Deception: Unveiling the Truth about Banks and Governments

In times of war, sacrifices are necessary. Citizens understand that they will have less to spend on things they need due to imposed war expenditures. Politicians are aware that presenting this truth to the citizens can lead to revolutions and jeopardize their survival. They wouldn't want to be marked as the ones who raised taxes. Instead, they choose to sell the idea of war without mentioning taxation. They print money or issue debt to fund war expenses, manipulating the citizens through moral coercion of public opinion. The citizens only feel the effects of inflation years later, while politicians escape without consequences.

Direct taxation, currency creation, and debt issuance are attractive to governments because they allow them to finance their agendas. A cheap currency with a heavy debt burden benefits the government, as it can pay back debts with cheap money, encourage exports, and discourage imports. However, citizens suffer from the fall in currency value and inflation when purchasing goods. This misalignment of interests between the government and its citizens is evident. Politicians would rather inflate the currency than impose direct taxes. The control of fiat currency is given to the government and non-federal entities, leading to the economic system in the United States being in shambles.

The monitoring and creation of money are outsourced to a quasi-federal banking cartel called the Federal Reserve. This move is not only unconstitutional but also one of the reasons why the economic system in the United States is in disarray. Dollar hegemony, with oil being denominated in dollars in the world market, allows the US to print paper dollars in exchange for real products from its trading partners. The US accuses its trade-surplus partners of practicing mercantilism, but it is actually benefiting from the privilege of inexhaustible national purchasing power. This unfair advantage leads to job losses in the US, as the economy no longer needs production jobs within the country.

Scarcity economics and overcapacity are intertwined. Mercantilism, the quest for national purchasing power, requires a corresponding lowering of wages to lower prices. Fiat currencies not backed by gold eliminate mercantilism and rely on trade surpluses denominated in a foreign fiat currency. The US accuses its trading partners of practicing mercantilism when it is actually engaging in reverse mercantilism, shipping real wealth overseas for paper dollars. The size of the US market is insufficient to absorb the continuous growth of the world's new productive potential unleashed by globalization. For the global economy to reach its full potential, the whole population of the world needs to participate in consumption. However, economic and monetary policymakers view full employment and rising wages as the cause of undesirable inflation, hindering true global growth.

The world's poor are key to solving the issue of overcapacity. To achieve true comparative advantage based on global full employment with rising wages and living standards, the global finance architecture needs restructuring. Exchange rates should be based on purchasing-power parity, and the world trading system should be reoriented towards balanced trade. Exporting nations should be paid in their own currencies to reap the benefits of earned external demand. This shift will prevent misguided protectionism and potential global trade wars that lead to economic depression, political revolutions, and threats to world stability.

The rich nations, both internationally and domestically, are gaining control over a fast-expanding portion of the world's wealth. Rising middle-income nations, such as China and India, threaten the rich countries' dominance. The rich economies try to co-opt the elite in developing economies to perpetuate their dominance. The Western financial media highlights success stories of new internationalist entrepreneurs in developing economies while downplaying achievements of the national bourgeoisie and state-owned enterprises. The rich countries fear the equalizing prospect of emerging economies and resort to antiquated measures like tariff protection. The rich economies' efforts to protect their dominance through tariffs and restrictions on low-price imports are unfair and hypocritical.

The textile quota issue is an example of protectionism. Quotas were imposed on Chinese textiles and clothing products due to import rises. However, the dispute is a transitional issue as textile integration eliminates trade distortion. China's market offers immense opportunities for global exports, and textile integration will not only benefit China but also the whole world. The textile industry in China employs millions of people, and job losses are expected due to the restrictions. The textile dispute is a political friction created by the US, currency valuation, and restrictions on Chinese direct investment.

Job losses in the US are often blamed on the growth of Chinese manufacturing. However, studies have shown that structural shifts in the US economy are the main cause of job loss, not outsourcing to China. The US policy aims to keep higher-paying jobs in services, finance, and management while allowing low-paying assembly line jobs to be outsourced. China has also been losing manufacturing jobs due to rising productivity, although the pace is faster given its industrialization. Workers in both countries are not receiving their fair share of economic growth, leading to income disparities and social unrest.

The concept of a job and the idea of income generation need to be reexamined. In the post-industrial society, jobs are shrinking as the economy expands due to rising productivity. Treating involuntary unemployment as paying jobs or providing citizens with sovereign credit entitlement could alleviate the problem. The economy should provide a job for everyone looking for work or still pay them wages while keeping them unemployed to fight inflation. The current economic system perpetuates scarcity and fails to eliminate overcapacity.

The ideal of plentitude, exemplified in the biblical story of the Tower of Babel, challenges the concept of scarcity. The law of plentitude rejects the idea of one God and embraces many gods, embracing diversity and eliminating the distance between the divine and the human. The story of Babel teaches that unity and aspiring to godliness can lead to a false sense of human powers. Monotheism abhors pluralism, but pluralism is a gift from God to make humanity more human. The world economy has entered a stage of overcapacity, rendering neoclassical economics of scarcity obsolete. The management of aggregate demand is necessary to address this issue.

In conclusion, the money deception perpetrated by banks and governments has led to economic imbalances and job losses. The pursuit of national purchasing power and the reliance on fiat currencies have created tensions in global trade. The outsourcing of monetary policy to a quasi federal banking cartel has further destabilized the economic system. The rich nations' attempts to protect their dominance through protectionist measures are unfair and hypocritical. The textile quota issue and job losses in the US highlight the consequences of these policies. To achieve true global growth and eliminate overcapacity, a restructuring of the global finance architecture is necessary. Treating unemployment as paying jobs or providing sovereign credit entitlement could alleviate the challenges posed by scarcity and overcapacity. The ideal of plentitude challenges the concept of scarcity and promotes unity and diversity in the world economy.