Debt is a Drug
Back in the 90’s, with the fall of the Soviet Union and the invention of the internet, the world experienced a great economic boom. The European Union began to grow, the common currency was soon to be adopted, the DOW and the DAX rallied on huge bulls, mainly a new Eastern market, Russia and a new way of selling stuff, internet.
The 90’s were a happy time of rowing demand, growing supplies, growing profits and growing expectations. To fuel this demand, banks began lowering their rates, they kept them as low as possible for people to borrow, the truly electronic credit card made it easier for people to borrow. A generation of Debt has been conceived.
America held its head up heading into the new millennium. Yet someone had to crash the party, and on September 11th, 2001 that someone was Bin Laden. A lot of people have stated that Bin Laden has achieved that which he so desired, a weaker America. And yes, after the 9/11, the wars in Iraq and Afghanistan have morphed the country of Hollywood, Jerry Springer and McDonalds into a country of terrorist-fearing-lunatics, it damaged the reputation and face of America all over the world beyond repair.
Yet what people fail to see as a consequences of 9/11, is the debt that it has created, the perception and normality of debt, its effect on the economy, on global trust, on the financial industry.
To fight pointless, unwinnable wars, the American government began printing a lot of bonds and t-bills. It began selling them to other countries, of which China was the biggest consumer. When China didn’t want or need the bonds, the US government simply sold them to the Federal Reserve. We loaned our own money. And soon, the United States was living entirely on debt.
How did that affect the world you might ask? It really depends on how you look at it.
Because US was so much in debt and borrowing at record speeds, it enabled the banks and other countries to do the same. The European Union, with its wealthfare programs and rock bottom borrowing rates enabled other countries to borrow. In a way, a cozy relationship between banks and government established. Governments needs money, for wars, wealthfare or infrastructure, banks needed more clients, more money, more profits. To “produce wealth” governments all over the world lowered their regulation, freed the banks to do as they please.
The effects of such strategy are seen today.
But the question still remains: Can WE escape this suffocating, self-destructing system?
Yes, with pain and diligence, humanity can reinvent itself…on paper. You see, debt is nothing but demand for money where there’s no money. Debt is a Government that wants to build new roads or new schools or go into wars but doesn’t have enough tax income to do so, debt is a family looking to buy a good house in a good neighborhood, but without the sufficient income, debt is more importantly an engine for young entrepreneurs to kick start their projects, their dreams, ideas and ambitions. Debt is important to the survival and progress of humanity, it’s impossible to live without debt.
Yet the debt that I am writing about is the mass-systematic-debt, Government debt, and the fiat-money-debt. It’s not borrowing and then growing, no, it’s borrowing to exist. It’s a drug that a junkie can’t live without, a drug that can kill, a drug the junkie has horrible withdrawals from, and a drug that is enormously addictive.
The world needs to have an intervention