The Horrors of ignorance can make The Horrors of Greed seem Trivial: The Unseen threat faced by the human civilization.

in #economy3 years ago

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 progressively regressively 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.

  1. Production precedes consumption
  2. Consumption is the final goal of production
  3. Production has costs
  4. Value is subjective
  5. Productivity determines the wage rate
  6. Expenditure is income and costs
  7. Money is not wealth
  8. Labor does not create value
  9. Profit is the entrepreneurial bonus
  10. All genuine laws of economics are logical laws
    Source: https://mises.org/blog/ten-fundamental-laws-economics
    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.

Happy steeming!

Sort:  

A loan from an EU-based bank with the amount of 100 Euro is indeed backed only by one Euro or in some cases even by zero Euros as not enough people are saving today their money because of nearly zero interest rates on savings. So where does such a loan really come from? If a bank lends out money backed by nearly nothing it takes this loan out of the pockets of all users of this currency (for example Euros) through inflation. You cannot loan out something out of nothing. This is the fairy tale of dumb mainstream economists which do not understand anything of the real economy. The central bank system was invented in 1694 to rob the people who do not understand how they are fleeced every second of their life. And this lead over the centuries to the picture above. The fiat money is sucking the wealth out of the working class and lead to mass starvation in Africa etc. The only way to end the central bank system is a new system based on true crypto currencies backed by the blockchain.


That's some real wisdom. Communism would simply destroy everything. But half-truths are like an incurable disease that doesn't kill the patient. You are dead accurate in your statement. You earned yourself a follower :-)

The money that is created out of nothing in the banks should go to the creative people and the people that actually contribute something to society.

That being said, I liked your article again very much and I get the point somewhat I think, but what I was thinking was this: Aren't we in too deep? Hasn't the point of no return been crossed and isn't the only way to resolve the debt something like selling a part of your country?

Like maybe America could sell New York, Washington and some other cities to Dubai or something ;)

Here is a great article I've found: https://www.internationalman.com/articles/three-reasons-why-the-us-government-should-default-on-its-debt-today
We are way past the point of no return. We can't really solve the existing economic problems without loosing a limb. At best we could move into a sensible economic policy and make things get better over few decades. But people care too much about the short term.

Even if a country sell a city, if the policies aren't changed, it's only going to be a temporary fix.



This is amazing, i have read both posts and damn, you get it right, maybe i disagree with something (or i misunderstood something) but in general i love it

I live in Venezuela and i see the real big picture of the problem in my country, i dont have as many followers as you do, and i would like to write an article about the current situation in Venezuela with you, it can be broken into a series of posts, if you are interested dont doubt to tell me

And again, really nice post

Manuel,

Check out @vieira. He's written quite a bit on Venezuela.

I don't know much about what's going on in Venezuela as I don't live there. I have self-studied Austrian economics and markets for 3 years. You are free to adapt any of my writing as long as you give me credit. I'm open to trying new things. How do you propose to publish these posts?

BTW @vieira is someone you must checkout. He does some pretty good writing.

I would like to focus in today's problem rather than the history of the problem in the country, most of the time when people talks about Venezuela they start at 1992, but i really think i could post a really good content focusing on the present, breaking down characteristics like the society, the economy of today, how some people manage to survive in some parts and why, while in other parts people is eating from the garbage, all of this is really good content without the need of a history class

And is better, people from other parts of the world read about the recent history of Venezuela, but they dont really understand anything, because no one has ever explain how the society works in here, how people reacts to the problems and stuff like that

Very good idea. How can I contribute?

You are better at writing and have a better and wide knowledge of the English language than i.
I would like to write a rough copy explaining to you the issue, all of the things you are not going to find on the internet due to propaganda and the behavior of the Venezuelans on the internet, and then i would like you to review it and post it, of course adding your personal touch

This will be very interesting because we are fusing together the point of view of someone inside the problem, and someone outside the problem, hence i think you will find a better way to explain to the foreigners what is happening
I think of breaking it down like this

    • Society
    • Government
  1. – Economy
    Those three will be the main posts, if they receive good feedback we could continue with the smaller yet important parts

Leave your e-mail if you are interested, or any other mean to contact you
p.s: i reply till now because i run out of bandwith

Same thoughts as on my comment to yesterday. I’d Love to talk about the different ways in which some of these necessary [for any justice] changes to be pragmatically enabled, and we’re kinda at the leading edge of the ram needed to sink the “fee yacht”.

Thank you for the excellent continuation of yesterday's article. I gladly read it. You are very wise. Thank you for sharing your wisdom. I believe that eventually we will all live in a world of plenty.

Спасибо за отличное продолжение вчерашней статьи. Я с радостью прочитал ее. Вы очень мудрый. Спасибо, что делитесь своей мудростью. Я верю, что со временем мы все будем жить в мире изобилия.

When there is a will there is a way.

Let's keep trying my friend. Thanks for your great work.
It is very interesting. I just wrote something in Spanish in which I cite some things you exposed in your article.
I love the way you think.

Resteemed upvoted

This post has qualified for a resteem by the Abasinkanga Resteem Service


@vimukthi just resteemed this post to 4100 followers



  • Pay for more resteems: Send 0.005sbd + post link as memo to @abasinkanga
I am not a bot. Upvote this comment if you like this service

I agree with the opinions of friends, because now many are poor compared to the rich, good post friends.

I have upvoted & resteemed this post.

Resteemed by @resteembot! Good Luck!
Curious?
The @resteembot's introduction post
Get more from @resteembot with the #resteembotsentme initiative
Check out the great posts I already resteemed.

The purpose of implementing a system is to facilitate order. In human society order can only be established when basic human needs are met. Therefore, the government, the system used to order the society, should have as its main objective providing an infrastructure for the individuals to use to meet said needs.

Hi @vimukthi, I have seen that you do graphic designs. Are you interested in my graphic contest?

https://steemit.com/resteem/@gasaeightyfive/contest-improve-these-2-logo-pictures-winner-gets-30-free-resteem-open

Thanks : )

Coin Marketplace

STEEM 0.16
TRX 0.03
JST 0.027
BTC 13050.76
ETH 408.42
USDT 1.00
SBD 0.99