Who done it?
But first, where did they do it, when did they do it and how did they do it?
I spent the early afternoon listening to economic "experts" on the radio. I'll have to say is, if you want guaranteed confusion and misinformation - do that - listen to the "experts" in the media. They talked about the economy, what's wrong with it and what they think needs to be done to fix it. But, they kept stepping over the main issue to get to some issue of far less importance. Then, they would take several segments talking about this less significant part, with a level of understanding that is an embarrassing jumble of slogans, misinformation, pretzel-logic and that special brand of arrogant-ignorance that is so compelling, it makes you want to holler back at the radio!
Let me illustrate: first off, few of them agree on the problem; so how can they fix a problem when they don't even agree on what it is? One says it's because we have too much money, another says it's because we are too greedy, another says that it's due to over regulation, yet another says it's not enough regulation, someone else says it's the Republicans, the next says it's the Democrats, one says the problem is socialism, another says it's the evils of capitalism, one says it's a great time to buy so put your money into the "market", the next says put your money into bonds, someone else says to keep it in a CD or in "cash", one says buy gold and the other says don't buy gold because there is a 3 week waiting period, this "expert" says that we are in for a long recession or depression - he's not sure which, the next one says they see a turnaround sometime soon. Honestly. What the *!%@&?#? Who can believe this garbage? Excuse my (*!%@&?#).
You should demand more from an "expert". But first, as an economic crime scene detective, you will need to investigate this crime scene a little on your own. Just a little bit of reading (start at the bottom of this blog and read it to the top), questioning, and personal observation and you will be able to tell when the "expert" is just yakking to fill time, in order to get a paycheck. You will have a clear picture of the problem and the solution - it's not rocket surgery!
The economic "experts" make poor economic detectives and will never solve this crime by stepping over the body lying at the front door on the way to the living room, where they can talk in their own comfort zone about something they are comfy with, like how the remote for the big screen TV works. Metaphorically, that is what they are doing, in terms of "analyzing" the problem with our debt based economy- they are stepping over the main issue, that all of our money is debt, and talking about the common myth and folklore that they have heard someone else say. They seem content playing this role of the parrot, rather than hard investigation. Then, once they have settled on a script they will parrot, as one self appointed "expert" said, they investigate, not to find truth, but to "validate their own positions". These "experts" start with false assumptions and then set out to "validate" them. That's one reason none of them agree - they are just trying to show the other guy how "smart" they are and that they have all of the answers. Poor leaders - great nay-sayers. Poor detectives - great parrots. Many of them get an "A" for verbosity, but an "F" for content and logic.
Now, a Little Detective Training
Back to the scene of the crime. The crime in our economy happens at the front door. That's where the body is - so to speak. That's where money comes into our economy. That's where we need to look to solve this crime. You, as a new, but smart, economic detective, shouldn't look further than where the body is, until you fully understand the subtleties of what you are seeing. So, too, in our economy, don't try to analyze what is going on in the derivatives markets, Open Market Policies of the Federal Reserve, or trade deficits and national debt to GDP ratios, until you first understand how money is created and how it gets into our economy. That makes ALL the difference and is the major clue to understanding how to solve this crime. So, don't step over that idea, until you really get it. In detective circles, they say that the dead do talk, if you know how to listen. Likewise, in terms of what is going on in our economy and how to fix it, don't move on to another topic until you can get a firm hold on what is being said here. It is litterally so simple that most people step right over it and proceed to another issue.
Just the facts ma'am, just the facts:
FACT: Banks create all money. But only as a loan.
FACT: The Federal Reserve says so, The United States Treasury says so, MIT and Harvard economists say so. It is so.
FACT: Work (production) is not the same as money; the money that we use now has to be created by banks as a loan for it to exist.
FACT: Work and money are different, and the banks only take interest payments in the form of money.
FACT: Media personalities, including the TV and radio "news" have no clue.
1. If ALL money is created as a loan, then, there is no money that did not originate as a loan.
2. If there is no money that did not originate as a loan, then all money is loan principal.
3. If all money is loan principal, then no money is available for interest payments - it's all loan principal!
4. Under a system like that, we can NEVER get out of debt. Ever. We can only borrow to pay interest.
5. Let's change the system so that it strengthens our economy and works for all Americans.
You can help. Email us to find out how.
Book 'em Danno.