How Money Created Slavery

Debt Harnesses the Power of Money to Create Slaves

Debt Harnesses the Power of Money to Create Slaves

In the last article we discussed how money created liberty, while this is true there is another side to the story.  Again we must restate that money is nothing but an agreement between members of an economy.  A commodity of a common value used for a currency in the exchange of goods or services.  It is the agreement that gives any money value, far more then what it is made of or backed by.  So if money is an agreement it is also something else, money is a force.

Money can also be called a symbol for energy, it represents energy as either human labor or the energy inherent to a commodity.   In reality when we look deeper money is like a battery, it stores excess energy so that it can be used later.  You work today, spend what you need and save the surplus for the future.  So money is in effect a force that can both store and move energy.  Last time I also said that money isn’t good or evil; it simply is.  While this is true as a force it can be used for good or evil purposes.  Just like a gun, a gun is inert, it doesn’t think it simply exists.  In one hand a gun can be used to murder an innocent person, in another hand it can save the lives of perhaps many innocent people.  It is the one applying force that determines the result, not object that directs the force.

Money works the same way in that it is the manifestation of energy and that energy can be stored, accumulated and applied as force.  This force can put a small competitor out of business or it can provide food the those in poverty.  This same force can be used to wage war, it can also be used to prevent war.  Keep this in mind at all times, money is energy, it is power and it can do both harm and good to varying degrees.

Now with all this said I am going to ask you a question that seems very simple but is quite complex and can open a serious can of worms.  One that if you are true capitalist (as I am) will cause some level of internal conflict if you allow yourself to examine it beyond the surface.

This question is….

Can a person have too much money, should there be a limit to any individuals wealth?

I told you this was simple and yet highly complex, to make it more so let me ask you the same question using two different words

Can a person have too much power, should there be a limit to any individuals authority?

If you are like me the capitalist in you will at first see the initial question to be some sort of socialist drivel.    A typical responses might be, “I don’t want anyone deciding what level of wealth I should have so why should I ever do it to any other individual no matter how well they do for themselves”.  Well how do you feel about the second question?

Can a person have too much power, should there be a limit to any individuals authority?

Most of us would be quick to answer the second question with a double yes.  Power is dangerous, the ability of one person to control another be it individually or by government must have limits.

So if power must be limited and money is power how can we say there should be no limits placed on wealth?  Yet how do we justify what is right and what is fair with preventing anyone individual or group from controlling others to the point of economic slavery?  My view is that under normal free market conditions the amount of wealth any one party can control is in many ways self limiting.  Yet what happens when we introduce two more components to the scenario

  1. The ability of the wealthy to buy results from government
  2. Debt that carries interest

In such a system the power of money is magnified in many ways and therefore with each increased order of wealth comes increased access and lower cost to acquire money.  In the current modern money system of every first world nation all money is “loaned into existence”  a dollar is really a certificate for a dollars worth of debt.   This creates an economic empire vs. the democratic republic we are promised.  If you are the Fed you create money, therefore you control all the money.  If you are at the elite banking and trading layer you control huge portions of the money for little to no interest and you also get to create money with a computer entry.  If you are at the consumer/labor layer you pay the most for access to money and gain the least from your efforts.

In such a system it isn’t so much that one person has too much, it is more that far to many people have to little.  In a true free market any individual can amass massive wealth with out interfering with another individuals ability to do the same.  In a system based on debt and spending, there must be a large portion of people in debt to support the small portion of people that hold the debt.  When we couple that to the ability to get laws passed via simply buying votes in government (we call this lobbying) the most successful in the system can literally crush competition with legislation.

The real issue we have with our current economic empire isn’t that those that work the hardest, save the most and behave in the most responsible matter gain the most wealth.  Hell that is what most of us want the world to be like.  Many of us have been foolishly led to believe if only the party with our preferred initial was in full control that is what we would have.  If you believe that, you really do not understand how money works or even the first thing about our current system.  Consider that the minute you learn the simple fact that “all money is debt” you should realize that money is no longer simply exchanged for goods and labor.  It is no longer a simple exchange, no longer a unit of work or a unit of commodity for a unit of currency.

Today currency comes at a cost, that is why when rates are low you might hear people use terms like “cheap money”.  You may be working very hard for the same money but others say it is “cheap”, why, because they are borrowing it for a “low” rate.  Yet in such a system the higher you are in it, the closer you are to the source and those closest to the source get the money for no cost.  Some entities even have a license to create it out of thin air.  So in such a system there will always be a portion of society that can simply create money in what amounts to legalized counterfeiting.

The problem is this isn’t anything like true capitalism.  In a true capitalist society I can make a much as I want and unless perhaps we are direct market competitors it does you no real harm, you can also be as profitable as you are capable of making yourself.   In our fractional reserve system though when money is “created” the total money supply increases.  When money increases in supply the result is inflation which means the value of all money goes down.  So when people at the elite banking layer and above create money they are literally sucking the value out of all the existing money, including the money in your bank account and investments.

Consider the following scenario.  You earn 100,000 dollars and you decide you want to have absolutely no risk with it.  So you convert it to 1,000; $100 dollar bills and literally stuff it in your mattress.  During the next year inflation is about 4%, so at years end you still have your 100,000 dollars but effectively it is only worth 96,000 dollars.  So where did the other 4,000 dollars of value go?  It wasn’t really “lost”, the elite layer simply fired up the digital presses, created money out of thin air and sucked 4% of that years wealth out of the general economy up into their ponzi scheme of fractional reserve banking.

So to put it in perspective at anytime the banking layer and above can effectively take value from the general population at will.  In fact this effectively is a tax on the American people, one paid in effect to both the government and private companies.  A tax charged by people who are not elected and never stand for elections and a tax you absolutely must pay, there is no way to avoid this tax.  It doesn’t matter if you can set your taxable rate to 0%, spend no money at all, etc.  Your money is still devalued.  Slavery indeed.

For a different perspective on the economic empire that most of us falsely believe to be democratic republic view the three excellent videos.  I have combined them into a single play list for ease of viewing.

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