Debt-serfdom and the dominance of Financial Power are two sides of the same
Let's be clear about three things:
I have covered this in depth for years:
There are three key dynamics to debt-serfdom:
There are many ways to state these fundamentals and shelf-loads of books have been written to describe the many mechanisms of financialization and serfdom, but we can summarize the dynamics in a few additional points:
This leads to an inescapable conclusion: the only way to kill the metastasizing cancer of financialization is to "starve the Beast" of debt. This is akin to starving a tumor by cutting off its blood supply - in the case of financialization, that means reducing debt to a trickle.
With democracy crippled by
an ever-rising tide of dirty money, the only way to destroy the Death
Star (the Fed and the Too Big to Fail/Prosecute/Control banks) is
to stop borrowing.
Pleading with the President
or Congress is like asking a cancer to please stop growing. Don't waste
your breath. Talking isn't going to fix anything.
Debt is the mechanism of the Financial Powers' dominance and the chains of our serfdom. Eliminate debt and you eliminate the foundation of banks' power and the financial bondage of serfdom.
This mechanism of neofeudal dominance is not unique to the U.S.: 500 Million Debt-Serfs: The European Union Is a Neo-Feudal Kleptocracy (July 22, 2011)
The only way to restore democracy is to cut off the blood flow of the financializing cancer, i.e. cut off debt. We have been programmed to view debt as necessary as air - it is impossible to go to college, start a business, own a vehicle or buy a house without massive debt.
It is not ordained that any of these requires a lifetime of debt. Our acceptance of debt is a programmed but still voluntary acceptance of serfdom.
It is possible to earn a university degree without going into debt, but it requires embracing an entirely unconventional approach based on sustained, goal-oriented frugality, thrift and outside-the-box thinking.
If an entrepreneur absolutely needs $20,000 to start his/her enterprise, then raise the money via crowd-sourcing.
If you must borrow money, only do so if you have a credible plan to pay it all off in the first year. If you cannot expect to do so, then your proposed enterprise simply isn't profitable enough to invest in.
If you must borrow money to buy a used vehicle, then put down $5,000 in cash and pay off the $5,000 balance within a year. Get a loan from a local credit union rather than from a TBTF bank.
If you must buy a house, then go in with others and buy a multi-unit building or a McMansion that can be shared, and only buy if you can pay off the entire mortgage with your current income in 3-5 years.
We cannot expect to control the vast derivatives trade in credit default swaps and synthetic collateral, but we can remove the real-world collateral of debt from the leveraging machine. With few mortgages, auto loans, student loans, etc. to securitize and leverage, the Financialization cancer will slowly die of starvation.
Once its ability to spread is halted and its profits plummet, its political clout will decline in equal measure.
Though it would dearly love to, the State cannot force anyone to take on debt except as taxpayers. We do not have to remain debt-serfs, nor accept our servitude as unavoidable or fated.
Debt = serfdom. There is another way to live, frugally, with only short-term debts that are paid off in a few short years. We either accept the consumerist-narcissist debt-serf programming or reject it. We are neither victims nor bystanders.
The choice is ours.
A MARKET CLEARING EVENT
The Global End Game - Part II
CHS and Gordon T. Long discuss the cycle of deflation
and the endgame of leverage, credit and phantom collateral:
But why are they falling apart?
The reasons are complex and global. Our economy and society have structural problems that cannot be solved by adding debt to debt. We are becoming poorer, not just from financial over-reach, but from fundamental forces that are not easy to identify or understand.
We will cover the five core reasons why things are falling apart:
Complex systems weakened by diminishing returns collapse under their own weight and are replaced by systems that are simpler, faster and affordable.
If we cling to the old ways, our system will disintegrate. If we want sustainable prosperity rather than collapse, we must embrace a new model that is,
We are not powerless.
Not accepting responsibility and being powerless are two sides of the same coin: once we accept responsibility, we become powerful.