A gaping hole in the economic matrix
by Jon Rappoport
June 10, 2015
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Stay with me on this one. You’ll see what the powers-that-be are really worried about.
You can roll up Bilderberg, the Trilateral Commission, the Council on Foreign Relations, the World Trade Organization, NAFTA, and the several current trade treaties nearing completion… you can insert all these Rockefeller Globalist forces into one great corporate agenda, and…
There is a problem. A problem for Globalism. This is, behind the scenes, what the titans of control are whispering about.
It starts here: understand that mega-corporations are the instruments of world domination. They move into countries where cheap labor, land, and resources are abundant, and they take over. This is what they’re meant to do. This is the plan.
Intelligence agencies and armies may precede them, but the corporations are the most capable organizations on the planet, when it comes to exercising enduring control.
The top three or four hundred corporations are responsible for at least 25% of all world trade.
However… here is the rub. As Globalist policies allow corporations to shut down domestic factories in industrialized countries and open up those same factories in places where slave wages are the order of the day; as tariffs on imported goods are canceled, killing off businesses that try to compete with mega-corporations; as leading economies decline…
The consumer base for these mega-corporations shrinks.
To put it simply, the corporations sell products. They need buyers. All over the world.
The top manufacturing corporations are running their assembly lines at about half-capacity. They could produce much, much more of what they sell.
But only a tenth of the world population has the means to buy these products.
There are partial fixes for the problem: profit-making wars; sales of corporate products to governments; governments basically paying citizens so they can buy certain products. But, in the long run, that solution doesn’t cut it. The mega-corporations are still lacking consumers. You can create only so many artificial buyers. Beyond that, the market system irretrievably heads downward.
Mega-corporations have the potential to produce and sell more and more; the consumer base is shrinking.
Globalism, the very system that is determined to elevate the power of mega-corporations, is diminishing the number of people who can consume what the corporations make.
The snake has been eating its tail for some time now.
Mega-corporate CEOs and their advisors aren’t completely stupid. Some of them see the handwriting on the wall.
World Bank and IMF fixes aren’t going to make this problem go away.
Neither is some drastic depopulation program. That would be heading in the wrong direction. Fewer consumers.
What about a radical re-set involving a new global currency? Suppose, for example, every inhabitant of the planet were outfitted with a free credit card carrying substantial buying power? Theoretically, that might work, if you discount what people who actually earn a living are going to do when they see billions of their fellow humans who don’t work outfitted with comparable consuming power. And that rumbling class warfare would be just the stormy beginning of the trouble.
Creating money out of thin air to satisfy the avarice of banks, to pay off governments’ soaring debt, to boost corporate bottom lines is one thing. Creating money out of nothing to make six or seven billion brand new consumers is quite another thing. In that case, the corporate-welfare gifting would lead to pollution and destruction of the environment on a scale that makes current levels look like a few leaking picnic baskets on a Sunday park outing.
And over the course of several generations, populations would descend into a nightmare of side-by-side buying power and increased unemployment. If you think, psychologically speaking, that’s a marvelous idea, and would bring peace and contentment, you need a brain transplant.
There is another factor to consider: technological innovation. For mega-corporations, that means robots/machines replacing humans as employees. More unemployment—unless the corporations hold back and refrain from implementing the “automation revolution.”
The corporate thrust, however, is always about moving forward. More robots in the workplace. Bigger assembly lines. Higher production.
It turns out that the Globalist agenda has an expiration date. Beyond it, the system comes apart at the seams.
The normal solution to a problem of this magnitude is: think short-term; avoid the inevitable; pretend all is well; leave the answers to the next generation.
Consider how hard-charging greed-head mega-corporate masters would react to the following proposition: “Look boys, we know you have the ability to produce goods for two or three planets the size of Earth. But we want you to service only a tenth of one planet, and that base will shrink further. Okay? Don’t worry, be happy. Everything is fine.”
Behind every Bilderberg, CFR, Trilateral conference, this is the specter that lurks in the shadows.
They’re not worried about escalating the level of their political control over populations. It’s the economics that don’t add up, no matter how many holes in the dam are temporarily plugged.
There is one extremely radical solution I haven’t mentioned. You could call it depopulation-repopulation. Via some vast plan, the numbers of people on Earth would be enormously reduced—and then over, say, the next hundred years or so, those numbers would be built up again with humans who, in some Brave New World fashion, are conditioned/programmed to be avid workers and consumers, who would be paid far more than a subsistence wage. These living androids/robots would satisfy the hunger of mega-corporations to produce and produce and sell and sell…
The multiple risks of trying a plan like that would amount to an open confession of an agenda so heinous it would create open-ended global revolution, from Tierra del Fuego to the North Pole.
Every present Globalist agenda-item does two things: a) it aims at tighter control of populations, and b) it enforces and progressively lowers a ceiling on mega-corporations. It reveals a future in which the number of those corporations will be drastically reduced. And that’s the rub. That’s the hidden factor.
Yes, the rich get richer and the poor get poorer. But everyone who thinks that analysis is the core of the current crisis is looking no farther than the end of his nose.
Because the rich, up the road, will get poorer, too. They’ll sink in the Globalist swamp.
The mega-corporate leaders are ultimately on both the sending and the receiving end of a long con. It’s a con perpetrated by their own system, a system built to make them kings forever.
How little they know.
It turns out that decentralization of power, on every level, is more than just the hope and dream of a relative few. It’s a planet-wide imperative; and survival is at stake.
The greatest economic matrix ever devised is blowing its engine.
Jon Rappoport
The author of three explosive collections, THE MATRIX REVEALED, EXIT FROM THE MATRIX, and POWER OUTSIDE THE MATRIX, Jon was a candidate for a US Congressional seat in the 29th District of California. He maintains a consulting practice for private clients, the purpose of which is the expansion of personal creative power. Nominated for a Pulitzer Prize, he has worked as an investigative reporter for 30 years, writing articles on politics, medicine, and health for CBS Healthwatch, LA Weekly, Spin Magazine, Stern, and other newspapers and magazines in the US and Europe. Jon has delivered lectures and seminars on global politics, health, logic, and creative power to audiences around the world. You can sign up for his free NoMoreFakeNews emails here or his OutsideTheRealityMachine emails here.
Henry Ford found that out a long time ago. Pay people a decent wage and they can afford to buy your products. (economics 101)
Leslie
You realize, I hope, that under current rules of accountancy wage costs must be recovered in final prices, so Henry Ford was wrong, and increasingly wrong as the human factor in production diminishes and the costs of depreciation of machinery increase. And frankly, anybody who thinks Economics 101 as taught in universities is anything other than a curriculum designed by banker-supported economist to thrown dust in the eyes of “the educated” is naive beyond comprehension. The academic economists teach–this is rich!–that economics is the study of the management of scarce resources (when we are drowning in production, unfortunately purchasable in current circumstances only by mortgaging our future and that of our children, and could easily multiply the output) and that the object of economic management is to create employment (not to allow the engineers to eliminate it as fast as their ingenuity can).
Henry Ford was wrong? Or did you mean the rules of accountancy are wrong?
1 percent of the people owns 99 percent of the real values, not notes made of paper.
And this 1 percent work together. Is there any organization like Illuminati, described in the Bible?
http://wp.me/p3tGFm-90
One single purpose: To surrender the WORLD to the beast.
They have quite a battle ahead of them.
Leslie
The only thing I can come up with is to get rid of the corporations and start all alver and this time uphold our farmers and ranchers too do the bet they can for only when we are actually responsible for feeding our own country, as well as helping out those less fortunate will we actually be doing what was intended in the beginning. Enough of this hogwash about greed and being the best we are all cut from the same cloth and must learn from our mistakes and start over again with a truly honest approach for every living soul on planet earth, thanks. Jackie ONeil
Reblogged this on Aussiedlerbetreuung und Behinderten – Fragen and commented:
Glück, Auf, meine Heimat!
Amazingly incredible! This must be telepathy. I was thinking the exact same thing today. I’m not kidding!
Of course, I couldn’t have said it better than you, you write so well. But in my mind it was as clear as what you have written.
They have created their own downfall. A bunch of greedy idiots.
I PRAY he is right, but I FEAR he is wrong.
Simply, we have been masterfully divided and conquered. Race……gender……sexuality…….abortion are the biggies off the top of my head. Confused, distracted, de-homogenized.
Unless and until people unite, they still run the show.
The House nixing Fast Track on TPP is a glimmer of hope.
THIS HAS NOTHING DIRECTLY TO DO WITH THE BILDEBERG MATTER; besides what difference does it make who, where, and what they meet about–we all know who they are and their agenda(s). It’s enough to understand the “UN AGENDA-21.” These BOZO’S are nothing more than minions of that matter. DISBAN THE U.N.!
HERE’S WHAT’S IMPORTANT–NOW!
PLEASE SEE BELOW: I tried sending this to Jon, but all were rejected, thus I’m posting it hereon:
PLEASE SEE ARTICLE FROM HONOLULU STARADVERTISER/JUNE 10TH:
“Kamehameha also instituted the Māmalahoe Kānāwai, the Law of the Splintered Paddle. Its origins derived from before the unification of the Island of Hawaiʻi, in 1782, when Kamehameha, during a raid, caught his foot in a rock. Two local fishermen, fearful of the great warrior, hit Kamehameha hard on the head with a large paddle, which actually broke the paddle. Kamehameha was stunned and left for dead, allowing the fisherman and his companion to escape. Twelve years later, the same fisherman was brought before Kamehameha for punishment.
King Kamehameha instead blamed himself for attacking innocent people, gave the fisherman gifts of land and set them free. He declared the new law, “Let every elderly person, woman, and child lie by the roadside in safety”. It has influenced many subsequent humanitarian laws of war”.
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From: kimokala
To:
Subject: Tents of homeless removed from Kapalama Canal bank
Date: Wed, 10 Jun 2015 20:28:16 -0700
Tents of homeless removed from Kapalama Canal bank
Families living in the area struggle to find a suitable space to set up new living quarters
By Associated Press
POSTED: 1:30 a.m. HST, Jun 10, 2015
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ASSOCIATED PRESS
Stefanie Sanchez, above, waited with belongings that she removed from the bank of Kapalama Canal on Tuesday while city crews completed a sweep of the area.
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Homeless families in Honolulu are figuring out where to go after the city swept the banks of a canal where they were living in tents.
Crews cleaned up the area along the Kapalama Canal on Tuesday. The cleanup came less than a week after the City Council finalized a ban on sitting and lying down in the area.
But the cleanup was enforcing a stored-property ordinance, not the sit-lie ban, said Jesse Broder Van Dyke, spokesman for Mayor Kirk Caldwell.
Single mom Stefanie Sanchez, who was living in a tent by the canal with her 5-year-old daughter, waited with their friends and belongings on a side street. They planned to move right back to the canal bank after the cleanup was complete.
“There’s a lot of community here, as well as a feeling that we’re home. We know what to expect here,” Sanchez said. “We’re just sort of hoping, praying for the best.”
Under the stored-property ordinance, crews are required to give 24 hours’ notice so people can remove their belongings.
The city spends $15,000 a week for crews to perform similar sweeps throughout the island, Broder Van Dyke said.
“Usually people will return after they’re gone,” Broder Van Dyke said. “If they enforced it every single day, it would probably be more effective, but right now we’re spending $15,000 a week on it; and the crew has to get to all over the island, so they end up getting to Kapalama about once a month.”
To enforce the ordinance, a crew from the city Department of Facility Maintenance goes out five days a week to locations from Hawaii Kai to Waianae, and Chinatown to the North Shore. Workers remove, on average, four to eight tons of garbage per week, not including the personal property items they store for later retrieval, Broder Van Dyke said.
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Hit the Reset Button – Canada Free Press
http://canadafreepress.com/index.php/article/hit-the-reset-button
Hmmm, what if the planet has a technologically advanced group that has been grown by feeding parasitically off the consumer oriented corporations/economy. At some point of advancement this group would no longer require the services or support of the masses (including the masses of corporations). At that point this group could “pull the plug” and you’d end up with a clean, lean, mean Matrix serving their needs and a depopulated planet for their playground. What if there is evidence of such a group ?
This is one of the best post about the big picture I have read to date.
I also noticed this huge, whopping paradox in the apparent plans and thought “hmm, that’s odd”.
As a corollary – making some huge percentage of the worlds population ill with your food and worse off from your petroleum based ‘health care’ does not make a whole lot of them more productive and so better consumers either. Sick and dead people are not good buyers.
There is always the possibility that there are those who deliberately helped create this system to steal as much real assets in the world as possible, and strip mine everyone and everything to the point of inevitable and anticipated diminishing returns have this plan for the end game:
Whereby – once the fraud engine that funnels everything to them slows down and crosses some measurable tipping point – at that point they will trigger the hail mary plan to drop the hammer of open World War, and then totalitarian technocracy on everyone all at once in the ‘pliancy of chaos’ .. thereby solidifying their gains, and emerging on the other side with some fantasy they have of permanent kingship of a controlled species a reality.
Sadly for them (and everyone else) its hard to actually see any likely scenario where that chaos this will create will end in any kind of a world worth ruling over. I don’t think the real world would cooperate in making that transition controllable or predictable in any real way. Only truly crazy people divorced from their own humanity and delusional could believe that it would be.
But we’ve known for a long time that most of these people are obviously insane.
Sick people are the best consumers considering the health care industry in the USA is their largest source of revenue. Think think think.
The money in the ‘health care’ industry is generated by government subsidies and insurance games. Hardly anyone pays out of pocket for the full horribly overinflated costs of the chemicals and emergency repair services on offer.
So like everything else in the current corporatist debt fraud system, it is an irrational system that is not based on any solid foundation of the laws of production/consumption – therefore it is also unsustainable and built to collapse.
The actual *people* that are sick have (by definition) physical and mental disabilities which damage their ability to be fully capable and productive in whatever they do. Therefore, they earn less money. In aggregate this means that a world of people that are unnaturally ill have less earning power, and therefore buy less stuff.
When a large percentage of the population also die unnatural deaths from illnesses caused by the poisoned food, dangerous chemical drugs, and an incompetent medical paradigm overall, this reduces the total number of people that are available to buy any stuff at all.
I didn’t think it was necessary to elaborate on any of that, but .. there you have it.
Quite an accurate doomsday scenario you’ve painted here, IMO. In reality, these delusional psychopaths are nothing more than Dr. Frankenstein, creating a dead thing in their own image. They are not capable of seeing the truth. When surveying the world landscape at this point in history, I can see exactly why Jesus said this: “For then shall be great tribulation, such as was not since the beginning of the world to this time, no, nor ever shall be. And except those days should be shortened, THERE SHOULD NO FLESH BE SAVED: but for the elect’s sake those days shall be shortened.” – Matt. 24:21,22
Reblogged this on EbolaInfo and commented:
Popping the Globalist dream bubble.
Excellent article, as always.
Do wee whoop, clap and cheer? Do we break out the champagne? Do we worry the general public cannot imagine any other system?
I myself have wondered about that. There are just so many rich..they have outsourced our jobs and people put money into survival..I care not about being outfitted or latest gagets
As more awake less spending ..they are fools , another reason why..
Uh, Hello?!?!
This should have been the commonsense thinking from the very beginning. I was thinking this when NAFTA was being pushed for all its worth. No one was ever able to answer my question on HOW would these corporations be able to stay in business, if no one could afford to buy their products and services any longer, all due to being laid off from their well-paid jobs.
The “Snake eating its tail” analogy was well-chosen. THAT is EXACTLY what this type of “economy” is too: “Self-Devouring”.
– Rev. Dragon’s Eye
Hi.
On the what ifs, what if the corporations are part of the depopulation agenda?
You say: “Suppose, for example, every inhabitant of the planet were outfitted with a free credit card carrying substantial buying power? Theoretically, that might work, if you discount what people who actually earn a living are going to do when they see billions of their fellow humans who don’t work outfitted with comparable consuming power.”
If everybody is given the same balance on their card (this should be done not globally, but maybe on a national basis, accounting for variations in local conditions), surely nobody would have grounds for complaint. And why would people who wanted, and could find, paid employment not be able to supplement their basic income in this way? It’s idiotic, and a form of torture, that people are without the means of survival, short of beating each other up in order to get “work” that is becoming a thing of the past because of robotization. The “educational” systems and MSM have done a bang-up job of stupefying people to the point that they can’t see the cornucopia right in front of their noses. All we need to do is replace the current monopolistic financial system with a distributive one. If you want to know how this could be done, read the article on “Social Credit” on Wikipedia.
in the short term they can make it work by lowering first world standard of living from say $30,000 to $15,000 and then they can raise the living for third world from $2,000 to $6,000 etc… but as Jon notes this would just buy them some time and would lead to people in the first world getting seriously upset at a reduction to their income, as well as what happens for those who buy a car for $30,000 or a house for $300,000 while they earn $60,000 and then see that reduced by 30% etc…and yet their mortgage and car payment are based on those original purchase prices. yup no easy answer except a full paradigm shift based on family, communities and quality of life over consumer goods and money. what was that about “can’t serve two masters” where mammon is money so we are already in a mess as soon as money enters society. I suppose it will need to be something about service to other mindset where “payment” is just given from goodwill, but this would require a major shift in people’s thinking and hearts.
[…] This conclusion about redistribution is the product of a mindset that is framed from a belief that we have shortages. There is no shortage of ANYTHING on this planet except money. Money is a figment of our imaginations and it only has value because we believe it has value. The above posts have already put the finger on the problem. This is an ACCOUNTING problem that is actually easy to fix. Bob’s admonition to read about social credit on Wikipedia is great advice. David you will like what you see. Open your mind to a better way. When enough of us “get this” then we will have the change we need. Who ever achieved anything without a clear objective? The people perish for lack of knowledge. This is the knowledge that is lacking.
My friend Wally just posted the following and he said it so well as to the true nature of the accounting flaw that I am repeating it:
I am sure that the real rate of inflation is much higher than reported. Anyone who purchases goods and services experiences this for themselves—in how many fewer units they receive for a price or in what higher price they pay for a unit. A true measure of inflation would consider all wasted effort—including War as the Great Waste-Maker. New money created by bank loans may serve the function of cancelling procuction costs at time of purchase but must be recovered in the prices of goods produced in the future, making the inflationary pressure relentless. Individual item prices can vary and even drop, but the important issue is the ratio of total financial costs relative to the total amount of effective purchasing-power available to liquidate them, and that this ratio is forever increasing as we replace human effort by technology as a factor of production. Money injected by State-assumed debt that accumulates delays the full increase of prices which would otherwise occur but it is nevertheless repayable and must be costed into the price of future production over time, as must its cost of servicing. Of course, this new credit “feeds” charges carried over from a previous costing-cycle.
The economy could not function under the existing defective financial system without the expansion of credit which State spending provides, incurring thereby increasing debt and/or taxation. This, of course, means progressive control over the economy and of human activity by the State, i.e., increasing centralization of power by the State at the expense of individual freedom and choice of action. Failure to recognize this fact, and to understand its underlying financial-accountancy causes, leads policy-makers to utter an endless stream of restrictive inanities about the so-called “desirability” of a “balanced budget”. They think in terms of their own personal experience where they have been taught to “live within their (financial) means” and have no understanding of the implications of such policy in a macro-economic sense wherein, as a nation of individuals, we should be able to do anything of which we are capable and desirous—constrained only by availability of physical and psychological resources. It surely is the marvel of an “enlightened” age that we actually believe that our activities should be constrained by an abstraction called money—which properly regarded is merely a system of accountancy which simply should reflect and not control what we.do. We seem to be afflicted by some kind of collective insanity—which the opportunistic, predatory and confiscatory banking fraternity seems, understandably, only too happy to preserve.
The Middleclass the world over is struggling but they do not know what is going on in government and the banking system. If the middleclass does not wake up in 2015, the New World Order will be in place and the middleclass is down the sewer.
Captain Canada’s Crusades
Economics is a river in the nervous system, maybe even an entire lobe. Forces greater than the mighty corporations have this problem well in hand. Rest assured the times they are a changin…We need to be the eye of the storm.
Your article is on Infowars today.
Behind Bilderberg, Trilateral: the Globalists have a major problem
http://www.infowars.com/behind-bilderberg-trilateral-the-globalists-have-a-major-problem/
Here is one comment of the 60 posts so far:
Irate Pirate • 2 hours ago
Holy Crap! Jon Rappoport, You are a Genius Man, I Love You! This is it! This is their Endgame, Self inflicted poverty through Greed, where no one wins in the end. Great Article
THIS Is What I’VE Been Warning About For OVER TWENTY YEARS! As Big Corporations annihilate the working and middle classes, they lose two key things:
1. The creative talent to make and produce the new products that can keep an industry competitive, and
2. CUSTOMERS!
I discovered looking into MLM “Deals”, it was ALL about creating a stack of management. When reminded someone must SELL SOMETHING to keep paying the bills, their eyes would go blank.
It’s the same with all that fiat money amassed by the 1%-without Customers and Producers, it’s just fancy kindling.
It’s hard to believe that, at the highest levels, ‘they’ don’t know that the consumer-driven profit machine is doomed. If that’s the case, then, perhaps, there’s a vision and agenda for the world beyond mega-corporations, wage slavery, consumerism and profits. It just stands to reason. Perhaps it’s just motivation for the ‘movers and shakers’ to move the agenda forward.
I was witness, from the inside, of a once great ‘mega-corp’, with huge manufacturing capability/competence/capacity, being dismantled over the course of twenty years or so. The CEOs and other corporate officers who made it happen were richly rewarded; it was part of a plan, or so it seems looking back (it didn’t have to happen). They didn’t care one wit that ‘their’ company was no longer capable of making and selling things, no longer capable of bringing in huge profits.
There’s something else afoot; not that I know what it is, but perhaps some form of blatant neo-feudalism, with a reduced population and techi-serfs serving those at the top to keep it all going.
“There’s something else afoot; not that I know what it is, but perhaps some form of blatant neo-feudalism, with a reduced population and techi-serfs serving those at the top to keep it all going.”
The word you are looking for is Technocracy.
I highly recommend reading ‘Technocracy Rising’ by Patrick M. Wood
http://amzn.to/1S9ja0r
It is very clear, well researched and full of citations – yet a reasonably quick read. That will get you up to speed on the nuts and bolts plans and goals of many of the people behind the deliberately exploitation and domination of the entire planet through debt fraud and corporatism.
Also – this interview with Patrick Wood – which at over 3 hours is quite thorough and enlightening — worth every minute. He covers much of the same material he covers in the book, conversationally as well as with slides and documentation.
http://amzn.to/1S9ja0r
When you sat down to play this game of monopoly, you agreed to a set of rules that you did not read or understand.
As long as you embrace civilization, with its division of labor meme and worship of progress, you will continue to head down the road toward slavery for yourselves and your offspring.
It is past time to leave the game.
Looking toward setting up a new system or “fixing” this “broken” one is a fool’s errand.
Go outside and look at the sun. Talk to a daisy. Be one with a mushroom.
Humans don’t have the answer.
Drink your urine, feast on the burdock, swim in the river, live life to its fullest enjoy your time here.
Increasing centralization of power is indeed the critical issue facing society. The primary obstacle to it’s decentralization is an almost universal ignorance of the manner in which the existing financial system renders the price-system evermore non-self-liquidating–making impossible the recovery of industrial production costs through sales. We attempt to resolve this problem by contracting bank debt so to provide access to the products of industry by the foolish expedient of mortgaging our future by transferring these costs as an exponentially growing debt charge against future cycles of production and by engaging in an orgy of wasteful and destructive activities culminating in continuous war. Neither Finance-Capitalism nor any form of collectivist organization (e.g., socialism, communism or fascism) can resolve this problem. A solution can only be achieved by an appropriate modification of the existing financial credit and price-system so as to properly facilitate distribution of the out-pouring of modern technology-based industry–in the context of expanding leisure.
Socialism calls for State ownership and administration of the means of production—the central planning of the economy and of human activity. The key feature of socialism is centralized power exercised by mandatory employment in projects determined by the State. As such the suppression of individual initiative is an inevitable result. This applies to all forms of “socialism”—national or international in nature.
Social Credit is the inverse of socialism. People have this notion in their heads that a sharing society is socialism, presumably because of an assumption that the sharing will be accomplished by re-distributing existing wealth by various confiscatory forms of taxation. It must be made absolutely clear to all and sundry that Social Credit stands for distribution of consumer goods at source as they emerge from the production line and not for re-distribution of earned incomes. Production and Consumption have no meaning, one without the other. The two must be matched and balanced. Producers’ costs cannot be recovered without money received from consumers, whose incomes alone provide business its only means to liquidate all financial costs of production.
National (Consumer) Dividends and Compensated (lowered) Prices at point of retail sale must be provided and financed by a Government Agency (created or existing, whatever is most efficient and convenient) with funds not derived from taxation but drawn down from a properly constructed National Credit Account which would be merely a continuously updated actuarial accounting of the nation’s real credit, being an inventory of all those resources which are available to be used for production and which, if so used, may result in the making of financial prices.
Unfortunately, the minds of the public are conditioned by a false assumption that the economic “pie” is limited to the financial incomes paid out in production and they perceive this as the only source of funding. This assumes, erroneously, that the price-system is self-liquidating, i.e., that incomes paid out as wages, salaries and dividends are not only equal to, but available, to meet the total financial costs of production. This is a major fallacy which is readily proved by the enormous amount of accumulating inflationary private and public debt created as loans by the banking system, which allows goods to be purchased after a fashion but does not liquidate their financial costs of production because these loans merely transfer these costs to be recovered from future cycles of production.
The physical (i.e., real) costs of production are met as production takes place. Obviously if this were not the case, production could not proceed. That is self-evident and axiomatic. When goods are produced in finished form they are meant to be used and should be available to the overall consuming public in total and without any residual financial debt. Those persons whose services are actually needed deserve to be paid for those services but the money they earn is increasingly inadequate to claim all of the producers’ output. That is why we resort currently to new money created as debt by bank loans in order that we might carry on producing and consuming. This new bank-created money does not remain in circulation but is cancelled when used to purchase the goods in respect of which the loan was contracted. This accumulating debt is bogus and is required only because price increasingly includes, as real capital replaces labour as a factor of production, allocated charges in respect of real capital which are not distributed as income in the same cycle of production.
Consumer income is cancelled prematurely, leaving a growing deficiency of income relative to total prices of goods awaiting purchase. The flow of final prices increasingly exceeds the flow of effective financial purchasing-power. We can simply forgo acquisition of these goods, leaving the producer no option but merely to warehouse or destroy them and go bankrupt—making the whole exercise of production with the objective of consumption a mindless exercise in futility. Or, we can assure that, while required remaining actual workers continue to benefit from their earnings, all citizens, workers included, benefit by gaining access to the full output of industry by being provided adequate purchasing-power to make this possible. In a Social Credit dispensation, Inheritance would be generalized. Socialism typically wants to destroy inheritance.
Social Credit stands most definitely, un-ashameably and un-abashedly, for a sharing society—and as labour is increasingly reduced by technology it would become more sharing with the passage of time. It does not involve State ownership, planning or administration of the economy or of social organization as such. It is highly decentralizing of power to individuals to the extent that economic independence is made possible by full access to the increasing abundance made possible by technology. It is appropriate that acquisition of goods and services is available to those with earned incomes, but to limit distribution of goods and services to those with earned incomes when human work is increasingly eliminated as a factor in the production of such real wealth, is totally irrational.
The abundance which technology makes possible should set men and women free from physical want, increasingly to choose independently and without duress their preferred activities in life. Social Credit gives real meaning to the concept of economic democracy as a consumer-motivated system of production—as opposed to the counterfeit socialist concept of economic democracy as a centralized proletarian Work-State.
From a metaphysical standpoint Social Credit would be a practical, physical incarnation of the Christian Doctrine of Salvation by Unearned Grace—in contradistinction to the prevailing Judaic conception, and system, of Salvation through Work.
I hope that the above comments may help to clarify the issues which you have raised.
http://www.socred.org
An interesting counterpoint to the fraudulent and inconsistent methods of extrapolating “falling value” as professed by Marxist economic theory.
Excerpted from: Okishio’s theorem – Wikipedia
[“Okishio’s theorem is a theorem formulated by Japanese economist Nobuo Okishio. It has had a major impact on debates about Marx’s theory of value. Intuitively, it can be understood as saying that if one capitalist raises his profits by introducing a new technique that cuts his costs, the collective or general rate of profit in society – for all capitalists – goes up.
Okishio [1961] establishes this theorem under the assumption that the real wage – the price of the commodity basket which workers consume – remains constant. Thus, the theorem isolates the effect of ‘pure’ innovation from any consequent changes in the wage.
For this reason the theorem, first proposed in 1961, excited great interest and controversy because, according to Okishio, it contradicts Marx’s law of the tendency of the rate of profit to fall. Marx had claimed that the new general rate of profit, after a new technique has spread throughout the branch where it has been introduced, would be lower than before. In modern words, the capitalists would be caught in a rationality trap or prisoner’s dilemma: that which is rational from the point of view of a single capitalist, turns out to be irrational for the system as a whole, for the collective of all capitalists. This result was widely understood, including by Marx himself, as establishing that capitalism contained inherent limits to its own success. Okishio’s theorem was therefore received in the West as establishing that Marx’s proof of this fundamental result was inconsistent.
More precisely, the theorem says that the general rate of profit in the economy as a whole will be higher if a new technique of production is introduced in which, at the prices prevailing at the time that the change is introduced, the unit cost of output in one industry is less than the pre-change unit cost. The theorem, as Okishio (1961:88) points out, does not apply to non-basic branches of industry.
The proof of the theorem may be most easily understood as an application of the Perron–Frobenius theorem. This latter theorem comes from a branch of linear algebra known as the theory of nonnegative matrices. A good source text for the basic theory is Seneta (1973). The statement of Okishio’s theorem, and the controversies surrounding it, may however be understood intuitively without reference to, or in-depth knowledge of, the Perron–Frobenius theorem or the general theory of nonnegative matrices.”]
Result
[“Nobuo Okishio proved this generally, which can be interpreted as a refutation of Marx’s law of the tendency of the rate of profit to fall. This proof has also been confirmed, if the model is extended to include not only circulating capital but also fixed capital. Mechanization, defined as increased inputs of machinery per unit of output combined with the same or reduced amount of labor-input, necessarily lowers the maximum rate of profit.[1] “]
Complete text:
http://en.wikipedia.org/wiki/Okishio%27s_theorem
I agree the current economic situation could lead the Snake to “eat its own tail.” But could the Snake have another tail up its sleeve? The snake thinks WAAAY ahead, let’s not forget. There’s little question that the West (Europe, North America) with its bankster-imposed austerities, indebtedness, privatizations, etc. is hitting consumers very hard. Meanwhile, however, economies in the BRICS countries (Brazil, Russia, India, China, South Africa, etc.) are on their way up, with each country having a growing and easy-to-manipulate consumer culture. There may be method in this madness. Consider this quote from Gary Allen’s book, The Rockefeller File (1976):
“The master planners devised the strategy of a merger – a Great Merger – among nations. But before such a merger can be consummated, and the United States becomes just another province in a New World Order, there must at least be the semblance of parity among the senior partners in the deal. How does one make the nations of the world more nearly equal? The Insiders determined that a two-prong approach was needed; use American money and know-how to build up your competitors, while at the same time use every devious strategy you can devise to weaken and impoverish this country. The goal is not to bankrupt the United States. Rather, it is to reduce our productive might, and therefore our standard of living, to the meager subsistence level of the socialized nations of the world.…The plan is not to bring the standard of living in less developed countries up to our level, but to bring ours down to meet theirs coming up… It is your standard of living which must be sacrificed on the altar of the New World Order.”
An expanded Mideast/Central Asia war/currency reset process seems very much a part of this “plan,” first by pauperizing and breaking up the once prosperous Libya and Iraq, then by targeting Syria, Ukraine, and Iran, all the while driving Russia and China – convenient arch/faux enemies – to vastly expand their defense capacity and, potentially to surpass the West in technological prowess. With a ‘transhumanist’ future emerging characterized by robots, synthetic biology, artificial intelligence, space travel and the like, workers will be even more impoverished and enslaved. Consumers are only a means to achieving the Goal; the Snake can ultimately live without them. The NWO is often mistakenly equated with the Anglo-American Alliance, but as James Corbett and other analysts have noted, China is very much part of the Globalist picture and is receiving massive amounts of 1% bankster investment as are the other BRICS countries, although Putin is something of a wild card, and could place a wrench in the works. If the NWO is to have an expiration date, those living in the BRICS alliance may need some convincing.
There was a time a person could pay as they go.
Now you have to pay as you come and go.
Kudos to Rappaport for writing such a great article and as Walter Klinck indisputably demonstrates, Social Credit is a plausible resource distributing system that would re-energize Free Enterprise. As some evidence in that regard one might look at the regeneration of Germany post 1933 when a government NOT dedicated to the protection of economic predation took over – unemployment rebounded, industrial production took off, and technological innovation promised new industries to constantly raise the standard of living. In 1932, many Germans were grubbing for roots. In 1938, the majority had meat on the table, owned their own homes, a radio, and many had new cars. All that quickly when the government protected the people and instituted common-sense laws to help them.
But the issue is not and never has been honest disputation over economic wherewithal. We are dealing with the manipulation of politics by evil. It always sounds ludicrous to the conventionally minded. I suggest they read Political Ponerology by Lobacewski. The world is controlled by psychopaths who influence us clandestinely are are inhumane – it’s as simple as that.
The only means by which we can begin to free ourselves from this alien mind-set is to test each individual for abnormal mental and moral development before they get into positions of social influence. It is a genetic deviation along with standard mental illness that is also in communion psychically with spiritual evil.
Hear here! Well said!
Well, well, well, you have surpassed yourself Jon.
I think you are spot on. Incidentally, the homeless “unrelated” comment is surprisingly apt. With greater and greater numbers of individuals falling off the edge of the system, could that [eventually] collapse this model which doubles as holistic “social order”? (i.e. vicious cycle – less money circulating; less workers; less buyers; less sellers; more dependent on social handouts; more systemic rejects; towns, states, entire countries of “homeless” displaced peoples)
Best
OT
I think TPTB do not need money, they need us not to have money…
Quote,
Theoretically, that might work, if you discount what people who actually earn a living are going to do when they see billions of their fellow humans who don’t work outfitted with comparable consuming power.
In the Netherlands, proven, up to now, it works. Of course by cleverly set traps of take and give by tax collecting.
Reblogged at: http://wp.me/p5gE0B-pW
Braking News!
Obama-Backed Trade Bill Fails in the House
House voted 302 to 126 to sink a measure to grant financial aid to displaced workers
http://www.infowars.com/obama-backed-trade-bill-fails-in-the-house/
According to http://clerk.house.gov/evs/2015/roll361.xml
AYES:
Republican : 86
Democratic: 40
NOES:
Republican: 158
Democratic: 144
Hi Q!
i haven’t read the details yet, but this is ostensibly very good news!
but, we should be on guard and thoroughly investigate what happened today to whether or not it was a feint.
https://en.wikipedia.org/wiki/Feint
i believe the talking point from Pelosi today was “slowing down fast-track” not “stopping fast-track”.
You know i understand this, and what you are saying, but here is the thing- they are insane and don’t care.
I’ll say it again, they are insane and don’t care.
What do we do if the rich are crazy and people refuse to wake up no matter how much evidence if put before them?
Likely the current authority on the subject of psychopathy is Dr.Carl Hare (UBC & Simon Fraser U). His book, ‘Snakes in Suits’ clearly shows how individuals who lack humanism but are endowed with intelligence, are generally clever enough to stay ‘just inside the law’ but over time, to create their own laws. Surely the tremendous shift in financial equality to the point of creating that 1% who own something like 90% of the world’s wealth had to form ‘new laws’ that enabled this to have occurred
What we have here is called : The Dunning–Kruger effect. You can read the whole page at wikipedia, but here are a couple high points:
The Dunning–Kruger effect is a cognitive bias wherein unskilled individuals suffer from illusory superiority, mistakenly assessing their ability to be much higher than is accurate.
“If you’re incompetent, you can’t know you’re incompetent. […] the skills you need to produce a right answer are exactly the skills you need to recognize what a right answer is.” David Dunning
Dunning–Kruger effect – Wikipedia
http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
The thieves, liars, and murderer’s that humanity is dealing with today have a biblical lineage that began with Cain. They finance enemies and profit from their wars; create human misery and profit from their demise. Those who own Israel are not of the tribes.
“Why do you not understand what I am saying? It is because you cannot hear My word.” (44) You are of your father the devil, and you want to do the desires of your father. He was a murderer from the beginning, and does not stand in the truth because there is no truth in him. Whenever he speaks a lie, he speaks from his own nature, for he is a liar and the father of lies.” (45) But because I speak the truth, you do not believe Me.…”
Succinct analysis Jon, as usual. Thanks.
The problem with seeing globalism’s weakness as being the destruction of the consumer base is that Rockefeller’s ultimate aim is to reduce the population by billions. No one other than F. William Engdahl seems to realise how crazy these c***suckers are.
check out Vangard Corp. at the center of every global business and significant transaction. It’s not 13 corporations, it’s one… run by the same people.
These folks have an agenda. They know full well about the problems of over supply and over capacity. Their goal is world domination. It is not necessary for all corporations to survive. It IS important that they get the world-wide global governance in place and that they are the ones controlling everything.
We fail to see that the real problem is not just economic and political. There is an ideological dimension as well. These people seem to believe that they are “invested” with the right and responsibility to rule this planet. And, it seems like there is a religious program as well.
In reading Tom Horn’s book, Zenith 2016, one is struck with the fact that our “rulers” in America have been influenced and/or adherents of philosophies and beliefs alien to most Christians. These Illuminati have been “Chosen” to run things for the creation of a new type of nation.(You must read the book for more)
And it appears that they are about to succeed.
After being aware of and watching the globalists and their “candidates” for political office, I am watching Donald Trump with a hyper-cynical eye. So far I like the way he’s confronting the globalists and their shills in the media but am far from being convinced that he’s independent from them… I have seen too much political theater in my lifetime to trust anyone today… I have learned to never give any politician the benefit of a doubt… only action matters to me.
Should Donald Trump become the CEO of the United States Government, Inc…. Will he have the character and courage to return it to the United States of America under the Constitution?
I share your concerns.