The Unnatural Welfare Given To Elites
When I was about 5 or 6 years old, my mother told me, with a sigh, that the rich get richer and the poor get poorer. When I asked her to explain to me how that worked, she couldn't. All that mattered was that we were poor, Ireland was in a recession and the future looked even less rosy than the terrible reception on our black and white TV.
If you have a 5 or 6 year old, go and grab them right now because I'm about to explain one of the ways rich people get richer.
Welfare
We all know that most unemployed people receive welfare. I say most, instead of all, because I've been unemployed a few times and only received welfare once (the first time) and I can at least confirm that there are people who don't qualify for welfare because of their immigration status, personal wealth or, you know, reasons. Because!
However, there are forms of welfare that are given by the central bank to those who have spare money lying around. For what reason? Because they have spare money lying around. That's how the World works!
Okay, I realise that I may already have lost the 5 and 6 year olds in the audience, but I hope that the grown ups can hang in there a little longer.
W4E
Welfare for Elites (I've made up the term and the acronym, W4E - please spread it around like teenage wildfire) comes from two directions at the central bank.
Why do central banks pay this interest? It's not like they're incentivising the commercial banks to remain as customers because... it's the central bank - they have no other option but to keep their money in those reserve accounts. The only reason for having this is to enable the rich to get richer.
What about the second form of W4E that's paid out by the central bank? Well, this one is a particular pet hate of mine - bonds.
For reasons that haven't existed for decades, governments believe that they need to borrow money so that they can pay for things. They 'borrow' money by selling securities (we'll just call them bonds here, though) to a select group of banks who can then sell them on to anyone who wants them. And you'd better believe that people want them!
Poor people don't get to share the love because they don't have spare money lying around. So, the gap between rich and poor widens. Inequality growth marches on. And thanks to inflation, low wage growth, increasing rents (yes, yes, that's part of inflation, but it's frightfully important!), etc., the poor really do get poorer.
Is This The Natural Order?
Central banks don't need to pay interest on deposit accounts or savings accounts. In fact, the central bank deliberately manipulates the money market to keep the interest rate above zero. So, without their interference, no one would have any reason to buy bonds (just as the government has no good reason to sell them) and your mortgage (or your landlord's mortgage) payments would be lower.
My friend, unfortunately, this whole financial system was developed by an elite group of people to enslave people with depth and money. So they can control the entire world. Just exactly like you said. The rich get richer and poor get poorer. Middle-class today is practically non-existent.
This is why I love Steemit. And the crypto-currency world. Because they challenge this slavery financial system set in place by people who can't get enough and always want more. I am hoping crypto will crash and burn this system of slavery and open up equal opportunities for people to have a better life. :)
Great post. Enjoyed reading it. Love the topic. :)
I often wonder if the middle class understand that they're either becoming or have already become working class. I don't think they do.
I don't think they do as well, unfortunately. Maybe crypto will change some things for us and them. Because we do live in a financially enslaved system which needs to be changed.
There's nothing in the crypto world to safeguard people from those that are greedy and corrupt. The system may change but unless the people involved change, what improvements can we really expect?
Thank you for the real talk. I tend to agree with you 1000%. Unless people make the change, nothing is going to change. I actually wrote my own quote and it is simple.
Without actual change, change is impossible.
Have an amazing day. :)
Spot on! #EndUsury! It baffles me that people think we need to be ruled by the likes of bankers and politicians. ugh! It's ridiculous! Resteemed.
Michael Hudson has a new book out which talks about how the Christian Bible was mistranslated to say "sin" when it really meant to say "debt". I know that the Bible specifically prohibits usury, so maybe he's onto something.
Thank you for letting me know about the book. Yes- he could be onto something and frankly it makes sense.
@originalworks
Simplified economics, nicely written. Have you ever read the Book "The Ragged Trousered Philanthropist" By Robert Tressel ?
I'd never heard of it, but I probably know a few people who fit that description. I see that it was written by a man who came from Dublin, just like me. I'll have to check it out.
Keep working, stop paying.
This way we short circuit the bankster's paradise in an efficient manner.
I used to work for a bank and hadn't a clue about how money is created until many years later. If I'd known then what I know now, I would have gathered the information to write a book.
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@penston
It’s never been fair. It was set up by the elite, for the elite... no one else.
The grand illusion will continue.
@jeejee