There are two ways to conquer and enslave a nation. One is by the sword. The other is by debt. – John Adams, 1826
A man in debt is so far a slave. – Ralph Waldo Emerson
The essay below was written by Zeus Yiamouyiannis, who suggests that when debt is essentially fraudulent, debt forgiveness is both the logical and only remedy. It is a brilliant piece that deserves your attention and should be read in full. It was originally published by Charles Hugh Smith at the blog www.oftwominds.com and I have republished it with my comments below.
I think this is the most important thing to understand about our financial system. Not just for investors or economists, but for anyone caught up in the rat race, anyone underwater on their mortgage, anyone living paycheck to paycheck, looking for a job or wondering how they are going to retire. Even the wealthy amongst you should listen up, because you will also be significantly impacted by how this all plays out.
The debt-based monetary system impacts 99% of the population in a very profound and negative manner. For many, it is as serious as life and death. For others, it is the single largest source of stress in their life. In my estimation, it is responsible for most of the suffering in the world. Yet very few, even amongst “professional economists,” show any sign of understanding the issue or any willingness to admit it.
I wrote an article last year entitled Debt Can Never Be Repaid (By Bankster Design). In this piece I pointed out how there is not enough money in existence to pay off all of the debt and that as the debt burden grows, we are being pitted against each other, fighting for the fewer and fewer scraps necessary to get our personal financial house in order.
The problem is that there are not enough crumbs left and this has led to an increasing number of people, cities, states and now entire nations going broke. As this happens, the bankers come in and claim the resources pledged as collateral or acquire slave labor and other austerity measures as repayment for the debt they created out of thin air. It is a deeply flawed and corrupt system that allows for the concentration of wealth in the hands of a few, while the rest of the world becomes poorer and suffers the consequences.
Whether you believe in government stimulus, low interest rates, low taxes, a balanced-budget amendment or a Ron Paul Presidency, none of these will solve the problem until we are willing to forgive debt and design an entirely new monetary system that strips banks of the ability to print money and charge interest. In fact, things can only get worse and there is ample evidence all around us of this coming to pass. The system is literally ready to implode under the weight of its own corruption at any minute.
Everything is fine today, that is our illusion. – Voltaire
While I would like to believe that we can muster up the resolve to take on the banksters, immediately forgive the fraudulent debt, return to using sound money and balancing budgets, it does not look promising thus far. I wrote a piece in June entitled “How to Fix the Economy,” in which the first part of my proposed solutions was the immediate forgiving of all fraudulent debt. I hope through the work of the author below and others, this idea gains some momentum. Please help spread this information and also make sure to take the necessary steps to protect yourself and your loved ones.
Endgame: When Debt is Fraud, Debt Forgiveness is the Last and Only Remedy
by Zeus Yiamouyiannis, Ph.D.
We hold this to be self-evident: When Debt is Fraud, Debt Forgiveness is the Last and Only Remedy.
Finally serious economists are considering a position I have been maintaining and writing about since the 2008 financial meltdown. Whatever its name— erasure, repudiation, abolishment, cancellation, jubilee—debt forgiveness, will have to eventually emerge forefront in global efforts to solve an ongoing systemic financial crisis.
“On a grand scale the only way to erase counterfeit money and (counterfeit) assets of hundreds of trillions of dollars is to erase the debts associated with those fake assets. (Let me underscore again, these are not “toxic” assets, they are fake assets.)… Forgiveness in general, and forgiveness of debt in particular, stand as virtues if they free us up to acknowledge, address, and learn from our culpability, start anew, and create forward.” ( The Big Squeeze, Part 3: The Quiet Rebellion: Civil Disobedience, Local Markets, and Debt Erasure (January 29, 2011)
Debt forgiveness, therefore, accomplishes two important things. It eliminates the increasing and outsized portion of productive enterprise to pay off unproductive obligations, and it clears the ground for new opportunities, new thinking, invention, and entrepreneurialism. This is why the ability to declare bankruptcy is so essential in the pursuit of both happiness and innovation.
Currently we are mired in a “new normal” and calls for “austerity” which are nothing more than the delusional efforts of a status quo to avoid the consequences of its own error and fraud and to profit evermore. So bedazzled by the false wealth created by debt multiplication and its concomitant fantasy of ever-higher returns, this status quo continues to be stupidly amazed that people are not spending and that the economy is not picking up. But how could it be otherwise?
Productive wealth has been trapped in a web of parasitic theft, counterfeiting, liability evasion, non-regulation, and prosecutorial non-accountability. All the fundamental attributes of a functioning exchange economy have been warped to reward creative criminals. I spoke extensively about this in my posts from 2008. ( Imaginary Worth, Empire of Debt: How Modern Finance Created Its Own Downfall (October 15, 2008)
The unsustainable nature of debt
Two observations: 1) Fabricated/parasitic so-called “wealth” destroys value by diluting the value of productive wealth. 2) Debt/credit that cannot be paid back is never an asset and is always a hot-potato liability (needing to be foisted to a greater fool to garner “profit” and transaction fees):