Let’s take a look at the correlations of government debt, banks and capitalism.
For this purpose I extract from my ebook “2012/20 Capitalism Endgame” which you can order by sending me an email to firstname.lastname@example.org.
The price is $12.20 or $20.12 or the same figure in any currency.
Here we go:
Governments create debt because they spend more than they receive in taxes. Then all apply the same debt financing mechanism:
The Central Bank lends to commercial banks at 1% interest and these lend to governments at 5% or more. The ECB provided a trillion € for that purpose in November 2011 and March 2012.
This system makes the banks rich without having to do anything. The tax payer pays the interest. Rating agencies determine the credibility of governments which in turn determines the interest rate. Naturally bank deposits of the oligarchy benefit in the same way.
Nobody questions the validity of this system – our collective consciousness does not question it.
When we create awareness we may begin to doubt – and change our collective consciousness.
In that case we’ll create a system that looks like this:
a. The Central Banks lend to commercial banks at 1%.
b. Commercial banks lend to governments at -1%. That’s minus 1%, a negative interest rate that reduces the principal over time to zero.
c. Commercial banks borrow further funds from the Central Banks at 1%, at a ratio of 3 to 1, the Borrowing Ratio, BR. These funds are to be used as loans to commerce, industry and private individuals. A BR of 3 to 1 means 3 to commerce and industry for profit in relation to 1 for the government.
d. Through the BR the Central Banks control the money volume, the money supply, and increase or decrease as the economy requires.
e. Governments no longer pay interest or repay loans – i.e. the tax payer, his children and grand children no longer inherit debts.
f. There is no longer any need for raising taxes at all, neither from the worker nor from the oligarch. Hence all incomes rise and costs for all products and services decline.
g. The flawed concept of “growth” is eliminated as you don’t need inflation to reduce debts.
h. Naturally you have tamed capitalism. Governments no longer need the capital of the capitalist, as a matter of fact nobody needs it. The capital of the oligarch is now in competition to the capital provided by the central bank. The commercial bank will accept deposits at a lower interest rate than that of the central bank only. Hence this capital can only be used to provide commercial loans – it’s original purpose, as all the “financial products” that have caused the world’s financial crisis have been abolished.
i. The oligarch can’t even get rid of his capital through paying taxes – there are no taxes. Donations to governments will be possible, some might even accept donations and reduce borrowing at the “non-hurting” negative interest rate. In that case the Central Bank will have to change BR, adjust interest rates.
j. In essence you need one currency only called money. Different currencies managed through different systems will always become the pray of capitalism as history has shown over and over again.
The above also illustrates the system of Permaculture Paraguay.
Now back to Greece:
As we are not starting from scratch but encounter a situation where a heap of debt has been created that serves the interest of capitalism we need to create an intermediary tool, “Debt Parking and Reduction, DPR”. All debt gets transfered to DPR then dealt with as above. This enables all creditors to write off loans in a slow and compensatable manner.
So how do we tame and abolish capitalism and replace with a sytem that benefits all?
The media and all tools that could encourage a thought process are firmly in the hands of capitalism. Hence the path of argumentation, common sense and logic is not available. Access to our collective consciousness resulting in a change of the way we think and how we perceive the world is possible.
We already experience movements like Occupy and political parties like the Pirates. They all know instinctively that something is wrong, that the world needs to be changed. They may not be able to articulate what is wrong and offer alternatives, but they demonstrate that a change of collective consciousness is happening.
In Part 6 I pointed to Amma, the Hugging Saint, and the connected IAVH and Elizabeth Joyce. As Amma said “Give me a thousand people and we’ll change the collective consciousness of this world”. You could become one of these thousand, then teach thousands more. The next course is in Doylestown, PA, 16-17 June 2012.