Answering the most important question a 21st-Century nation can ask
Q: What is the core knowledge the world must have to overthrow debt slavery and chronic economic depressions and such extreme redistributions of wealth to financiers, speculators and monopoly corporations?
A: Each class, creditor and debtor, operates in a different economy. The creditor class regulates both. In the lower class — consisting of the household and production sectors of the domestic economy — is constrained to operating in the lower loop. Banks and government are the means whereby the upper loop regulates and “farms” the lower loop.
In the lower loop money exists only as loans made by banks. Every loan for a time reflates purchasing power to the lower loop, but every loan eventually ends up deflating more purchasing power than was added for the simple reason that both the principal of the loan and compound interest on the loan must be paid back.
The upper loop provides the lower loop with a flow of loans but it takes back over time a larger flow than it takes in. Since the lower loop of households and domestic businesses of the domestic economy cannot pay back the loan with money, it must pay with assets.
If the upper loop wants to own new industries that exploit new technologies they extend loans to lower loop businesses so that the lower loop entrepreneurs, engineers and skilled workers will have the tools and payment to develop and build this new industry. Then the upper loop simply stops making loans until the drainage of principal and interest bring on deflation and depression. The new businesses will fail due to lack of demand for their products which in turn is due to the drain of purchasing power. The new businesses will go bankrupt and will be bought up cheaply by the upper loop with their large reserve of accumulated interest which they have been withholding.
However the upper loop does not by the failed businesses directly from the people who started the businesses and built them. Rather they wait until the businesses have gone into receivership — so that the money they pay for the bankrupt properties will not go to lower loop people. The upper loop loses power if every the lower loop people ever have purchasing power free and clear.
Now the upper loop money is not loans. The money of the upper loop is bets. It is a money of pure speculation. When speculators gamble in the derivatives market they create marketable bets called derivatives, but also commodities futures, swaptions or whatever bet they choose to make. The upper loop is completely unregulated. The upper loop is all about gaining assets from values they have created “out of thin air” — they find that “thin air” moves and physical matter and controls human behavior. The upper loop uses “thin air” to gain the assets of the earth.
One more thing. If a nation should try to run its own purchasing power system, the upper loop creditor class will us some of their accumulated interest or just their great “thin-air” event-shaping power to buy politicians or revolutionaries or other trouble makers to bring those nations down.
It is my hope that if enough people knew what was going on, that they could band together and capture the thin=air machine and modify it so that it provides thin-air purchasing power exclusively to the household sector of the lower loop. There would be no more upper loop. Each household would receive new purchasing power free and clear with which to spend as he or she sees fit. (Children’s social credit can be saved for an education and a house or spent on present family expenditure.) This new money appearing in households would be the only source of new money in the economy. Thus all economic power and political power would stem from the household sector. Household demand would direct production.
There would be a financial sector, but it would no longer create our money. Banking would be a simple matter of paying savers for the use of their savings so that money can be given to entrepreneurs, engineers and skilled workmen to meet the needs of the country.
Social Credit is the Only Answer to Usury:
None of the stimului of credit expansion or monetary expansion goes where it is needed.
click diagram to enlarge
For every injection there follows an even greater withdrawal of purchasing power.
The imbalances represent wealth gained by the Upper-Loop
The solution is non-debt-based money introduced in the household sector to replace the creation of new money via fractional reserve banking loans. New regulation would require balanced trade, the balance of savings and investment, and balanced government budgets — after repudiation of lower-loop debt to Eliteworld, of course.
- Social Credit replaces the Financial Sector as the source of money