Banking system as a house of cards

Hello all!

Today I do wish to point out some of the mind blowing facts that most economists or politicians do not want to talk about.

House of cards = banking systems
Banking systems of today use debt and interest to submit us. A physics professor using simple mathematics teaches us that we are all participating in a ponzi scheme:

• infinite growth is impossible in a finite world and that it has to stop at some point in time,
• we have limited time, resources and capacity to provide services is limited too
• when we notice the problems that infinite growth is causing, the time to react is almost gone
• explanation can be found with an analogy talking about  bacteria in the bottle found in third part of that talk 
• we have to think, question and learn more

Here is a playlist to all the 8 parts of the talk about unsustainable society titled The Most IMPORTANT Video You 'll Ever See.

Socialization of debt and loss
Currently here in Europe we have strong discontent about the euro debt crisis. When a worker is cheated of his pay, nobody is bailing him out. But once the German and French bank lend money to Greeks and other countries that can not pay that debt back - that is private banks, for private profits - those do get a bailout.

In the Greek scenario taxpayers from all around Europe are paying Greek debt. The banks get their loans repaid and are happy, but if the Greeks still do default, the tax payers will have to forget about at least a part of those loans.

As far as I know, US economy did bailout their banks just the same. I do not understand how did the citizens who usually promote private property and entrepreneurship allow such socialization of debt. The phrase TOO BIG TO FAIL should have never existed! Even the sound of the word 'nationalization' would normally cause opposition from millions in the US just a few years ago.


The unemployed are getting paid not to work!
Welfare in it's current form is a scheme for reducing production efficiency per person in society while still keeping some demand in the market. That suits profit oriented organisations very well as it reduces the supply of goods and services on the market and thus raising the profit margins. Behold the consequences! The corporations are reporting higher profits then ever, the prices are rising, the unemployment is raising and the governments are inventing new taxes, which will create a whole array of subsidies and monopolies to be exploited - for profit! It is a profit oriented paradise until the whole system collapses. I just hope we are not going to repeat the history by starting a world war III.


Promoting immoral behaviour
The current mechanics of profit oriented motivation does reward a situation of high demand and low supply. This should motivate individuals and corporations to compete in profitable enterprises, increase the supply and thus reduce the profits and prices for the consumer. Sadly I have noticed several situations where accumulation of power (political or monetary) is being abused to artificially increase demand or lower supply and thus extorting the consumer to pay higher prices.


I complained too much already about the bad stuff in the current socio-economic system. Next time we 'll start perfecting THE PLAN! If you have missed it: the goals are already listed in the post The goals of a new value system.