Mark Campbell5 said:I think we’re both on the same page here—the current economic situation is totally unsustainable. We definitely need to find some kind of fresh way forward.
Your suggestion is interesting, really, and it basically boils down to the government controlling the money supply. But, naturally, if the state takes control of that, they’d have to micromanage a whole bunch of other things too... which just leads us straight into a planned economy. And, well, look at the USSR—that system didn't exactly hold up, did it?
Even if you step back and look at history, any system that tried to lean into that kind of centralized economic planning had an expiration date. It’s because of the laws of physics... things you just can't negotiate with.🙂
Let me try to simplify this a bit, just so I can explain where the fundamental breakdown is happening.
Think about the two basic things you actually need to get anything done: raw materials and energy. You can't manufacture a single thing without having both in stock.
Take a simple pencil, for example. To make one, you need raw materials (the wood and graphite) and energy (to run the machines). If you have the supplies, the power, and the know-how, making a pencil is easy.
The problem is:
Raw materials—they run out.
Energy—it gets converted into useless heat.
So, if you go out and chop down an entire forest to churn out a mountain of pencils, you might end up with a massive pile of cash, but you won't have any more wood or energy left—because you used them all up to get there.
Sure, you could plant a new forest or hunt for a new power source, but even then, resources and energy are finite. Once you've burned through everything, you're still just standing there holding a giant heap of printed paper.
We’re living in a capitalist society right now, and this video explains pretty clearly why we hit these inevitable crises.http://www.youtube.com/watch?v=qOP2V_np2c0
Or, to put it in terms that might click better... try playing http://en.wikipedia.org/wiki/Command_%26_Conquer. You'll realize pretty quickly that unless you keep your resource and energy levels balanced, you're going to lose. Because once the supplies run dry... development just stops.
Right now, we’re facing a world with dwindling amounts of oil—the stuff that effectively powers our entire existence. It’s what they call peak oil.http://en.wikipedia.org/wiki/Peak_oil
And oil provides both the raw materials (think plastics, dyes, fertilizers) and the energy (fuel). Even with people trying to cut back, we're slowly starting to run low.
On top of that, you get the debt crisis. The only way for banks to stay profitable is to keep pumping out loans... if they stop lending, there's no way to pay the money back. That's because that money wasn't "earned" through actual new value; it was injected into the system via debt. We agree on that, don't we?
So, there it is... you've got a financial problem, plus a problem with raw materials and energy. If you want to fix the money side of things, you first have to solve the physical reality of resources and power.
And the only way to deal with the resource and energy issue is to scale back consumption.
The flaw in the closed-loop system you're imagining is that a closed (or even semi-closed) system has to produce *all* its energy and materials internally... and that's where the math fails. People want Levi's jeans from America... and your system collapses because money leaks out of your controlled loop, creating a deficit you can't manage.
So, can you walk me through how your system would actually handle the shortage of raw materials and energy?
Personally, I think the only real solution is to completely change the way we think and approach the whole problem...
The government is already pumping money into things, so we don't exactly have a planned economy anymore. The only difference is that now we're just building up this massive, mounting debt instead. Do we agree on that? If we do, then you're just trying to draw a false comparison to make the solution look bad.
Another thing is just preserving what your money is actually worth. Why does cash lose its value in the first place? Inflation really just comes down to greed and this constant need to cover costs. And those costs just keep climbing as debt piles up. It doesn't make any sense for the government to print money that’s basically losing value as it's being made. But I guess that's just the norm now because the whole credit system can't function without inflation.
Resources really are the bottom line. Let’s be honest, trying to print money without actual resources behind it is just pointless. We're seeing oil production hitting its peak right now, and all the data suggests it's only going to go downhill from here. The population is just too massive. At the rate we're burning through everything, civilization isn't looking at another 500 years. It's more like 50. Maybe less.
So now we’re hearing this whole story about energy reduction—you know, the idea of insulating your house to save money. Honestly, it feels like a massive scam designed to pump cash into the system through more loans. And don't even get me started on solar panels. It's like they want us all to go out and rack up huge debts just so we can supposedly lower our bills later or sell electricity back at some premium price. Everyone is acting like it's a brilliant move. But I have to ask... how does any of this actually pay off if you're just increasing your total debt and there aren't even any other real options on the table?
We definitely need to do something about how we produce energy. It’s an issue. But at the same time, it's just as clear that we can't make the energy crisis our number one priority right now. This wasn't really an issue eighty years ago. Back then, there were fewer people around, so it didn't matter much if a few players decided to profit off some kind of scam. And honestly, I can't even begin to count how many actually good solutions have been tossed aside just because they didn't serve someone's specific interests.
So now we're looking at this situation where the people protecting the interests of economic exploiters just won't lift a finger to let the system return to its natural state. Instead, they’re forcing this absolute rule by the entire financial sector—just pure service-based dominance—right until it hits a point of total unconsciousness.
The solution I laid out—the one Ivan Pernar is actually getting on board with—it basically does one of two things. Either it hands control of the money supply back to the government, which is exactly what they’re trying to do right now by driving up national debt, or it stops the entire financial sector from growing any faster than the actual economy. It's a choice. And honestly, what other option is there? We have to follow these guidelines. That's just how it works.
When you look at imports and exports, the money flowing out is just as much of an issue as the money coming in. Nowadays, when there isn't enough cash circulating domestically, countries start relying on foreign inflows just to keep the lights on and the government running. It’s basically a strategy cooked up by the highly developed nations. It worked pretty well for a long time, honestly, until pure greed took over. They started moving all that labor-intensive manufacturing overseas to chase higher margins. But in doing the math, they ended up sabotaging their own economy. You lose that steady stream of capital entering the country, and instead, you get this constant, relentless drain. It’s exactly what happened in the United Kingdom. It's like that old saying goes: you play with fire, you're going to get burned.
How do you stop capital flight? You use customs barriers and exchange rates. Honestly, the whole thing is just a mental hurdle. It’s all in people's heads. How does anyone deal with money flowing out of the country today? You hike up interest rates. That way, you encourage domestic production, and suddenly there isn't enough liquid cash sitting around to fund massive imports. So that basically means importing stuff with lower tariffs is just a carrot on a stick. You can't actually make it work because the exchange rate is tied down by foreign currency reserves, and an expanding economy naturally gravitates toward spending more on imports anyway. The only real way out is killing off economic growth with high interest rates.
We could actually make it possible for everyone to produce domestic goods because imports would become way too expensive. There would be plenty of work, people would stay busy, and we’d only be spending on imports if we were exporting something first. If everything lines up correctly, any minor inflation would really just come from rising energy costs. The real benefit of true money issuance is that there’s actual global solvency coming from domestic labor. MIO funds could work fine because companies would have the liquidity. We wouldn't even need those vague, messy taxes anymore since all costs—including the government's—could be covered. Anyone with the skills could earn money and use it to buy the very products we're making at home (money only has value if there's actually something to buy with it).
But to pull that off, we have to reject joining the European Union. Just look at
Roko Šikić's interview and connect it to this solution. The guy is speaking sense. In that show, they’ll include questions and comments from viewers who hit the nail on the head regarding why we shouldn't join the EU. Roko Šikić’s conclusion is basically that the number one priority is ensuring the US doesn't enter the EU, so that afterward, the economy can be organized in a way that serves everyone's best interests.
I'm in total agreement with Roko Šikić here, and I reached these conclusions just by analyzing how money is regulated in the US and the EU. See, ever since 1994, we've been stuck with this system where money is issued as credit, and that is easily our biggest domestic problem, right after the whole issue of not joining the EU. You should check out the video of
Nigel Farage's remarks regarding the debt crisis. He said some very heavy truths, maybe even unintentionally.
And we all know why the system can't just be swapped out overnight. Everyone who got burned and had to pay back massive loans
might get the idea to sue someone. 🙂 Consequently, the IMF and the World Bank could find themselves suddenly lacking their massive gold reserves before you can even blink. And that time is getting closer. To prevent that, the system has to be pushed into total chaos so they can sneak in a new scam. They've had more than enough time to cook something up, and I honestly think the backup scam is already prepared. All of this can be preempted if a nation emerges with a real solution. If that happens, everyone will try to claw their way out of the debt crisis as fast as possible and sue the bankers (the IMF and World Bank that were giving the orders) for damages. Maybe 2012 was the turning point? This implies that the elections for a new administration, which will likely fall around then, could lead to the victory of new monetary regulation.
Roko Šikić put it roughly like this: there are no lefts or rights. It's just thieves and honest people. It's up to you to decide early enough, vote NO on the EU, and choose the bloc that advocates for ending economic slavery (the debt crisis) through entirely legal reforms.
There won't be any nationalization involved; instead, it'll be the state taking control of assets that were issued without 100% backing.Much of the current banking assets would shift into state ownership, and interest rates would drop. Importing stuff would get harder (more expensive), but we would all live much, much better and actually be able to pay off our debts.
This isn't about closing borders or isolationism. Barter could work, too. Food for oil and technical goods. We have the land to produce food; we just need to make it profitable. The solution is right there in front of you. Listen to common sense and
make the best decision for all of us.
Again, here is the link to a very good book: Marko Franciskovic: "The Program for National Survival" where the author explains how a state can survive. You can skip the part about banks, though, because I think I've presented an even better solution for all time.
Stay alive and stay smart!