Saturday, September 14, 2013

The Layers of DEBT

Today, in the states, as in many developed nations, the people are conditioned to view their credit cards as a short term "loan", as in "credit" or "debt". They then use the dollars (or similar currency) they receive as a form of payment. If they pay off the balance of their monthly credit card account, they reason, they have "paid in full" the debt, for there is no interest incurred to extend that debt beyond the "grace period".

Thus, they see their currency as "payment in full" of an electronic debt.

But this way of thinking is flawed. For what are the electronic digits in a checking account? They are "credits" to that account yes, but what can they be used for other than to cancel out debits or debt? Ahh, they can be used to buy useful things in our everyday lives, for those who will accept your "check". And Dollar bills can be used to buy things too, just like a credit card, or a personal check. And most everywhere dollars are accepted as payment for most anything (or so it seems).

So you can see that "credit" or the "promise to pay" is an accepted form of payment in our modern world. If a merchant verifies your bank account to accept your personal check, that verification "backs" the banks promise to pay. If he accepts your credit card, again the issuing bank backs the promise to pay, as they have verified your credit history and applied a credit rating which allows them to issue you the card.

Now step back a moment and view, in this light, the dollars you receive (through earnings, or entitlements, or interests) and try to find the difference between them and these other forms of credit. Both are used as a form of payment, both are backed by "acceptance". Dollars, as notes of credit, are merely a way to "roll over the debt" just as you would take a credit card balance with one bank and use another bank's more favorable terms to "roll over" that debt.

Some would say that dollar notes of credit are backed by the issuing government's solvency, through its central bank, but in the end, all credit is backed by systemic "acceptance" and "rollover".

There is never "payment in full" with fiat currency, only an extension of debt, with another form of debt. You have no doubt heard that "money is debt" but perhaps have never really thought it through this way.

There is such a thing as "payment in full" or a way to satisfy debt without continuously rolling it over, but few people of Western thought give this concept any credence. As long as we are willing to work for debt, then economies will accept debt as a form of payment, and the banks will continue to lend it out, with interest.

So you may have your blogs about the new "World Order" and the evil globalist bankers of the kleptocratic fractional reserve system. But be careful not to suggest that all people of "good credit rating" suddenly voluntarily repudiate all debt to "bring down this unjust system". For if this idea were to gain any traction, you will then truly understand the weight of certain executive orders and how they will apply to you.

They were issued after all in the expectation that this may occur involuntarily anyway, and it may well. Wouldn't it be a shame if the dollar became the Discover Card of currencies? The little people would still try to use it, but it's acceptance would decline.

Still, the little people have more power than they think. It is just that they do not think, rather they obey, and accept. The system does not, and this is why the system owns them, and everything they lay claim to, by title in debt alone.

It is not a "credit" rating that is issued, but rather an acceptance rating, or an obedience rating. It does not matter which fails first, acceptance, obedience or confidence, for they are all one and the same. And the little people will never voluntarily renounce this system. That is for "the system" to decide, when and how.

3 comments:

  1. Hello Roacheforque,

    True, the little people do not think, rather they obey, and accept. This is primarily because the practice of looking beyond the velvet ropes is mentally and spiritually exhausting, and makes you rather unpopular at dinner parties. The mainstream media mocks the "beyond the velvet ropes" view. If they acknowledge it at all. And people who are exhausted and weak will mock as well, because that is what they are conditioned to do, and it gives them a measure of satisfaction to denounce a "greater fool."

    Life is hard. Life lived in defiance of the grinding heel of the grande illusion is even harder.

    You are right, the little people will never renounce the system. Until a collapse sends them fleeing for safety, they are powerless to step outside the system...

    Unless they are determined enough to exit toe by toe, millimeter by millimeter, into the protective arms of a wealth reserve that will shield them from the collapse.

    The machine is too big and too omnipresent for most little people to walk away from. The only way to exit is to compile many, many thin layers of preparation into a thick, durable blanket of stored value.

    In time, as the layers compound, the available options for a little person expand.

    There is an exit door, but it is at the end of a really, really long hallway.

    Cheers!



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    1. Well said sir, as always. As you surely know, your comments are always welcome here, and I value your thoughts. I hope by way of this new blog we can do our part to help shorten that hallway. It was done for me, and I feel compelled to give back, now that I have been cast down from the mount, and see the hallway clearly, from the other side.
      Happy Trail!

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    2. Funny thing about that hallway. No matter how clearly I think I see it, I can still hear my GPS occasionally say, "Recalculating..."

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