The Horrors of ignorance can make The Horrors of Greed seem Trivial: The Unseen threat faced by the human civilization.
Bad things happen all the time. Suffering exists in the word. We can work to end that suffering. To end that, we need to eliminate the root causes. If you know anything about The Chaos Theory or The Murphy's Law you know that it's highly likely that terrible terrible things would happen on this Earth we are living in. But that's not the point. That's not the point at all.
Chaos theory is a branch of mathematics and it is focused on the behavior of dynamical systems that are highly sensitive to initial conditions. 'Chaos' is an interdisciplinary theory stating that within the apparent randomness of chaotic complex systems, there are underlying patterns, constant feedback loops, repetition, self-similarity, fractals, self-organization, and reliance on programming at the initial point known as sensitive dependence on initial conditions.
The universe is billions of years old and each passing second uncountable amount of thoughts guide and affect humans. On top of that we have other creatures, weather, geography, physics, chemical reactions affecting what's going on in the world at any given moment. Can human suffering be eliminated? I'd say it's theoretically possible to get rid of physical suffering other than the fact that our bodies must be maintained or else they'd crumble apart.
So why am I getting into all this today. Well, I think about a lot of stuff all the freaking time. But 2 things in particular made me prioritize writing on this topic. The second reason is people investing in Ripple(XRP) and their reasons. The first reason is the responses I got for this #economy post I made yesterday: https://steemit.com/economy/@vimukthi/the-walking-debt-and-the-starving-child-welcome-to-the-upside-down-economics-of-kicking-the-can-down-the-road-to-get-high-on
It's a long post that took me hours to research and write. Please take a look at leas to get some context. It will take bit of a time but it'll be worth your time. I'm going to continue as if you have already read the post. The main point was not to weep at something tragic but to explore the roots of that tragedy. As I mentioned, bad things can and will happen and we need to deal with those bad stuff. We have what some financial gurus like Doug Casey call The Escher Economy. What's with the name??? Here you go:
The intention of the article was to show a root problem. The economic reality of the current world is that the poorest 10% earn 1 Trillion USD worth net debt and poorest 40% has zero net worth. Basically these people got a bunch of loans and I'm going to ask you to take a look around and see what people are doing with their debt. College is a great example. If you study what people did with their loans before the 2008 crash, you'll also find many things that doesn't make sense. While some people are in a mad ecstasy rave, millions of people are starving and dying and many of them are part of the richest 60% of the world because they have no access to banking.
Anybody can see the tragedy and the farce of a so called civilization having a billion people living with under 1 USD per day. What most people miss is that if any one of those 1 billion die without debt and a day's earnings at hand, they are dying richer than ~3.04 billion people's combined net worth.
Let this sink in for a while. If a poor farmer with enough money to buy a bottle of water from KFC died, he will have more money at hand than roughly 3,040,000,000 human beings. How???
a rich man knows that there is good debt and bad debt and that good debt makes you money. Debt allows you to use someone else's money! You can used that as a lever to make more money or enslave yourself to it.
This is a comment from @funbobby51 I received and he gets the point (sort of). With today's fractional reserve system and our medium of exchange being a fiat (Definition: 1. An arbitrary order or decree. 2. Authorization or sanction) our so called "Money" would simply disappear into nothingness in the case of a bankruptcy. So when we take a load, only a fraction of it is someone else's money. Most of it is made out of nothing. Here is the biggest catch. A bank could be taking a loan from bigger fractional reserve bank to give you a loan.
Let's get into some numbers (Cuz I can't leave some good facts alone)
- In 1968 UK had a reserve ratio of 20.5% which
progressivelyregressively reached 3.1% in 1998.
- Currently Brazil has a reserve ratio of 45%
- Suriname has a reserve ratio of 25% and has $3.641 billion GDP and 558,368 population
- Since 1999 Eurozone had a ration of 2% but on top of those negative interest rate madness, the reserve ratio was changed to 1% on 18 January 2012
If you get a loan from a EU bank you are borrowing 99 Euros of absolutely nothing and another Euro of someone else's money. I don't know the how banks operate in EU but if this bank has taken a loan from another bank, we are looking at 100 Euros with only 1 cent of real assets backing it. Generally the actual reserves are a bit higher than the minimum so the number should slightly change. But I'm sure get the idea.
Next time you see the above picture, don't think about greed or sadness. Think about the audacity of policymakers who think they can bend the laws of reality. The Economy relies on Math - just like cryptocurrency. But the policies may violate those common sensibilities. That's why we have an Escher Economy. That's why my tags for the yesterday's post were: economy money blog politics writing
I'd be glad if the world was just greedy and heartless. It'll be like waking a sleeping soul. What we have isn't sleepers but fakers. We have people who think they can dictate the economy with feelz and assumptions and with their god complexes they create market distortions that punish savers,reward debts and borrow trillions upon trillions (read: empty stomachs around the globe filled several thousand times over) and the collateral is the entire future of human civilization.
A debt is something you have to payback. To payback you need to produce more than your debts and interest. If there isn't enough production,what you are going to be left with is an empty promise. All of what was to be gained in the future will be lost. If you take a step back and see the big picture, a college party is more tragic and far darker than a little boy crawling on ground with a Vulture behind. The butterfly effect says that a simple act of a butterfly flapping wings can end up causing a storm someday. A wrong idea about money and economics can have severe consequences on the very existence of our civilization.
- Production precedes consumption
- Consumption is the final goal of production
- Production has costs
- Value is subjective
- Productivity determines the wage rate
- Expenditure is income and costs
- Money is not wealth
- Labor does not create value
- Profit is the entrepreneurial bonus
- All genuine laws of economics are logical laws
Further reading: Why Economics is not an Empirical Science
Treat the cause; not the symptom
Growing up in a Buddhist family I constantly heard why Buddhism is better than taking any other options. One primary omnipresent reason was that it's better to tech a poor person how to fish instead of giving some fish. You could feed a person for a few meals or you could enable that person to be self-sufficient for life and depend on his/her own individual effort and growth. You feed one child, then the next one starves. What we need to create is a sensible system where everyone can prosper with the sweat of their brow. Cryptocurrencies fully embrace the economic realities and that's why they have grown despite Trillions of dollars worth armies and propaganda machines backing up the competition (fiat). We need to act and do things that make sense. We need to build the future instead of just borrowing from it.
We shouldn't be finding starving children to feed. The best cure is prevention. We need to create an eco-system that is sustainable which would make a world where nobody has to depend on another person for food, water or any other basic needs.
After seeing the responses The Fountainhead got, Ayn Rand spent another 14 years trying to explain the core message of book. out of those 14 years, there was a speech that was about 60 pages that took her 2 years to compose. Gladly this took me only few hours. I really hope I got my message across this time.