[GJM] Two more programmes -- causes of collapse.

[Steve Consilvio]

On MondayJan 7, 2008, at 7:10 PM, discussion- 
request at globaljusticemovement.net wrote:

Rodney wrote:

> the most important purpose of binary economics as it has developed  
> is to correct the underlying causes not only of poverty but of the  
> huge economic cycles.

> The basic cause for the cycles is the issuing of interest-bearing  
> credit

> A new paradigm is a new paradigm and it requires to be examined,  
> and understood,  in its own terms.


Thank you for responding Rodney.

I agree with the purpose.

I agree interest-bearing credit is important to understand as a  
"problem" and not as an "opportunity," which is how it is usually  
regarded and taught/indoctrinated.

The new paradigm thingy I don't think you have right.

I have the new paradigm, not you.  Let me state it simply so that it  
is clear:
The profit on goods is the same as the profit on money.  <--- 
mathematically, ALL PROFIT, causes the concentration in wealth to  
occur.  Poverty should be understood as the inverse of the  
concentration of wealth.  One person gains and another person loses.

The cycles of boom and bust are simply the (macro) mechanisms of this  
concentration expressing themselves.  The guy who goes "bust" sells  
his stuff cheap, and the rich get richer.  The guy who bought it  
eventually goes "bust" too, and so the wealth slowly continues to  
concentrate.  This is helped along by the fiction of corporations,  
but the effect was the same even in agrarian economies.

The "mark-up" of interest is the same as the "mark-up" of profit.   
Taxes and philanthropy drive the same cycle, before someone can  
"give" they must first "take."

The real world is a zero sum game.  There is only so much land, cars,  
iPods, etc., in existence, but mathematically the numbers are  
infinite.  Adding a dollar of interest is the same as adding a dollar  
of profit.  Inflation = Profit + Interest.  It is a vicious circle,  
one drives the other.  Consider, if I pay less interest then I make  
more profit.  If I pay more interest then I make less profit.   
Inflation goes up either way, with each transaction between the buyer  
and the seller.  It doesn't matter who wins or loses on a specific  
transaction, the inflation is added to the pot regardless.

The more transactions there are, the faster the rate of inflation.   
With everybody using credit cards, there is now a third hand in every  
transaction, and other indirect hands  (printers, processors, mail,  
hardware, etc.)  One apple changes hands, and twelve people profit.   
The cost of the apple HAS to include the profit for all twelve  
partners to the sale, otherwise the seller can't profit himself.  The  
buyer is screwed, so he has to go sell something to cover the cost of  
the apple; the next item will have the profit of 13 people embedded  
into it, because presumably he has consumed the apple.

The math we are using makes buying and selling wonderful on paper;  
everybody gets to profit.  But it also makes consumption impossible.   
The rich get crushed by these forces the same as the poor.  A  
snapshot reveals the rich and poor exist, but a movie would reveal  
that the faces are changing places constantly.  Ford Motors was once  
rich, then it became rich primarily by financing their cars, and now  
they are broke.  They moved through all the stages.  They expanded to  
try to avoid problems, buy buying companies that were going "bust,"  
but it is impossible to avoid the forces that one creates.  All  
profit returns as an expense.

Capitalism can't work because it relies on profits.  Socialism can't  
work because it relies on taxes.  Philanthropy can't work because it  
relies on profit somewhere.   Because binary economics is still based  
on ownership and profit, it cannot avoid the inevitable: inflation  
and the concentration of wealth.  Eliminating interest and banking is  
simply not enough of a change to make a difference.  Unfortunately,  
the problem is bigger than you realize.

Don't let that worry you though.  :-)  A problem defined is a problem  
solved.

peace,
Steve Consilvio
www.behappyandfree.com

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