WEALTH AND MONEY, PART III: PHYSICS VERSUS MONEY

 

Imagine yourself an intergalactic traveler visiting Earth. You land in a place called America and notice the crumbling infrastructure. You wonder, “Why would a people who had built such magnificent highways, bridges and airports allow them to fall into such disrepair?” You question:

“Does America have sufficient cement, sand and gravel to rebuild its infrastructure? Yes. Is there adequate structural steel and other needed materials? Yes. Is there construction equipment? Yes, it sits idle. Is there fuel for the equipment? Certainly, America currently exports energy. Do Americans have the knowledge? They’ve built roads, bridges and airports for generations.

Is there sufficient manpower? Thousands seek family supporting jobs. Can America feed these workers? America is the world’s breadbasket. They throw food away every year. Is there sufficient housing? Construction materials abound, carpenters beg for work, producers of manufactured housing are idle.”

It is obvious that America is awash in wealth — (Matter + Energy) X Knowledge — and has everything needed to rebuild. You ask, “Why don’t you humans rebuild your infrastructure?” The answer leaves you bewildered:

“We cannot afford to repair our infrastructure” say the humans. “We have no money to pay for it and are in debt.”

“What is money and where do you get it?” you ask. “Why do you have to pay for your own labor and for resources gifted to you by the sun and stars? Who do you have to pay and why are you in debt?”

“Money is what we use to pay for our labor and materials,” answer the humans. “Our government issues a thing called a bond that lets us borrow money from the banks.”

Confused, you ask, “Where do the banks get money?”

“The banks own something called the Federal Reserve (Fed),” say the humans. “The Fed makes an entry on a computer screen that says it officially created more money. Then it tells the banks to make an entry on their computers that says the Fed gave them the money. After that the banks create a lot more money using something called ‘fractional reserve banking.’ For every $1000 the Federal Reserve gives them, the banks create $9000 on their computers they loan our government at interest.

The problem is we owe so much in interest we can’t pay back the original loan and we are in debt. The banks say we let spending get out of control and since we can’t pay back the money they created for us, they need to take possession of the wealth by foreclosing on our homes and ‘privatizing’ our public buildings, parks and infrastructure. They say they can’t lend us any more money and we need to cut back on social programs and government services to pay off our debt. They call it austerity.”

Astounded, you say to the humans, “Let me get this straight. You have all the resources, knowledge, and manpower needed to rebuild your infrastructure. However, you are not allowed to use any of this unless the banks give you money that doesn’t exist, created out of nowhere, that grants you permission to use what is already yours.

In return you are required to pay the banks compound interest that can mathematically never be paid off, which drives you into debt so the banks can claim ownership of the real physical wealth you yourself created using your own matter, energy, labor, and knowhow. It must be great being a banker. They defy the laws of physics and get something for nothing.”

You continue, “I understand you need money as a medium of exchange, but why don’t you humans just have your government get a computer and create your own money on a screen and lend it to yourselves. You can charge interest like the banks, but you will owe the interest to yourself so you can reinvest it in your own needs rather than giving the bankers something for nothing. You will never be in debt and will retain ownership of public properties.”

“Our legislators won’t allow our government to create our own money” answer the humans. “They say the private banks must create the money.”

You reply, “Who controls your legislators?”

If the above conversation sounds preposterous, it shouldn’t. It is precisely how the Wall Street and international banking cartel has extorted the wealth of humanity for generations. There is no intention of ever allowing any nation to get out of debt. The free ride for financiers would be over.

The governing principles of the Universe – the laws of physics – are telling us we have ample wealth to care for all, while the manmade rules of money, serving a rich and powerful elite, are manipulated to tell us we are broke and in debt. For the sake of mankind and the planet, we must end this insanity.

Part 4 will discuss The Creation of Money and Debt

12-year old Victoria Grant explains in 6 minutes why Canada, the USA, and most of the world, is in debt. April 27, 2012 at the Public Banking in America Conference, Philadelphia, PA.

https://www.youtube.com/watch?v=Bx5Sc3vWefE