Why Capitalism Fails

Just about everywhere capitalism exists, so does fractional-reserve banking and compound interest.

Compound interest is what they call an "exponential" curve. That is to say, if you graph it, the line starts off with a gentle slope but eventually curves up vertical. Once it does, all hell breaks loose and the numbers go astronomical.

Since our debt is tied to the exponential curve of compound interest, there must then necessarily be a point in time when our dues owed to banks becomes impossible to repay, no matter how hard we try.

This has happened before in history, and is the cause of many major depressions and revolutions worldwide.

reply to post by TheRedneck


Redneck and desert, you are both correct. Usury originally meant interest. In time it took on the meaning of "excessive interest". 33% is definitely excessive.

Originally posted by sickofitall2012
reply to post by HunkaHunka

 

You hate capitalism and the US people, so what exactly do you propose that can make this country a utopia? Communism? Show me facts on how that system works and explain why all of those under a communist society are so much better off and happier in their Utopian society.

The answer is not the result a "capitalism vs communism" debate. These are just two bad philosophies among an infinite potential of ideas.

Here's one problem with capitalism: To create value in our world, we must first make an appeal to someone who has capital. This is how we get paid for what we do.

... But there is one problem with this idea. The only things that get done are what people will pay for. More often, not what people will pay for, but what people will invest in with an expectation for profit.

The system works to consolidate financial power in fewer and fewer hands, until the only projects that get financed are the ones which promise the highest profits around, which at some point becomes the most brutal, inhuman, destructive set of ideas people can come up with. (War, anyone?)

We've all heard the phrase "war is good for the economy." While true in a capitalist system, this is a sick perversion of the forces of humanity being turned to destructive ends for the benefit of a few, rather than to build and refine for the benefit of all.

When people say "Ok, so capitalism has it's problems, but I don't want to be a communist" you must stop thinking that the only ideas out there are the ones you're being fed.

Here's something brilliant that has been tried in the past, and actually worked.

Right now, money collects interest. The more you have, the faster you get more. It is not to your advantage to work or try to store value in real material goods... the money that represents them grows while they break down, rust, and fall apart. So everyone everywhere is trying to get rid of the stuff they make so they can get their hands on money, which holds its value better (it actually increases during normal economic times)

But what if instead of banks paying interest when you deposit money with them, they charged you to hold on to it? Here's what would happen: People would realize that to hoard large sums of cash would be detrimental to their fortunes. The more money you have, the faster you lose it. So, they would begin to spend and invest this money. Like electric charge, voltage, and current, the amount of money, the desire to work, and the products changing hands would increase because everybody would be trying to get rid of money so that they could build up wealth of real material goods.

The system I have been describing above has been done before, under systems where banking was not privately owned, but rather credit was extended by society interest-free, and the holders of cash charged to safeguard it, reducing its value over time. The result was a very busy society, building long-lasting and durable goods, maximum employment, minimum crime, high wages, a much more equitable distribution of wealth, and generally much happier people.

Something to think about.

reply to post by 30_seconds


seconds, could you direct me to a site for more info on the no interest system? I'ld like to read more. Thanks.

Originally posted by TheRedneck
Now, the big question becomes, how do we safeguard that dying American spirit? We cannot forgo the coming crash, but we can survive it. How do we make sure that spirit of innovation and independence exists on the other side?

here's a start

KTM is looking into this idea also.

More discussion later. Gotta run...not literally....unfortunately

edit to add ... read the founder's notes at the above business site

[edit on 23-9-2009 by desert]

Originally posted by desert
reply to post by 30_seconds

 

seconds, could you direct me to a site for more info on the no interest system? I'ld like to read more. Thanks.

Interestingly enough, I believe it is well-covered in the Koran. You may find non-usurious economic institutions in some Islamic countries.

Originally posted by desert
reply to post by 30_seconds

 

seconds, could you direct me to a site for more info on the no interest system? I'ld like to read more. Thanks.

Wikipedia: “Demurrage”
en.wikipedia.org...(currency)


How the the town of Wörgl Austria revived its economy in 1932:
alt-money.tribe.net...


Credit as a Public Utility:
www.globalresearch.ca...


The unnatural mathematics of Compound Interest:
le.org.nz...


The fraud of Fractional-Reserve banking and Mortages:
www.foreclosurefish.com...

reply to post by TheRedneck


You may rate my post a ten, but I think I'm your fan lol.

Oh one liner? Nah, couldn't be.

reply to post by mikerussellus


From 1998-2008 capitalism ran by itself with little restraint, and what did it lead to? Black September 2008, the worst financial crises since the great depression.

I find it rather amusing that your attributing government regulations on the market crash.... that only came about following the market crash.

Capitalism can work, but with restraint. We have laws of the land to insure that we live peacefully, that we are given our rights to live our lives, so why should the market be any different?

This isnt about "freedom" as many rightwingers would argue. This is about common sense.

SG