Economic Collapse a Mathematical Certainty...

You don't need mathematics to figure out that a system dependent on infinite growth in a world of finite resources is doomed to fail. That's just common sense.

It's not the economy that collapses, sillies, it's the banking institutions. the economy would just go underground if the dollar collapsed without a backup in place. Of course, there are backups in place.

Silly thoughts, really. Fear mongers extrodinaire on this site, lulz...

reply to post by hawkiye


First problem...

This video was uploaded to YT in 2011. So his belief that it would all end in Summer/Fall was clearly way off.

Second problem...

This is more of the same "I have a belief and I'll make a YT video" and then others thinking "some guy giving his opinion is EVIDENCE and PROOF, because it's a video!!!!"

A YT video is not evidence of anything other than people know how to make videos. There needs to be far more actual explanation and theory behind this, not just some guy giving his OPINION.

However, even though I say that, I agree with the end result, we have not changed any of the fundamental problems that actually caused the crisis to begin with. There has been an ongoing extraction of wealth from communities out to tax havens and bank accounts owned by the wealthiest. This is a no-brainer.

Let me try and break it down and see if I can explain the root cause of this more effectively...

A guy works a small local business. The small business owner just wants to get by in life and live comfortably, and he wants good staff and great customer service for his guests, so he pays himself $30 an hour, his employees get $15 an hour, and he invests whatever is left of his profits back into his business.

He and his employee both live down the street, they pay their rent or mortgage to a local person or small bank, they pay their taxes to the local authorities. They shop in the other small businesses in the street, and that money stays in the community. It's recycled. Those employees of the small business also live locally and do the same...

Now, imagine a few of those small businesses are replaced by Starbucks, Wal Mart and Costco.

The intention of a corporation is to gain profit at all cost, while the small business owner just wants a nice retirement and to put his kids through college. Lets say that Starbucks makes $60 in an hour in that new store they just opened. They give their employee $10, and the manager $20, $30 is immediately funnelled out of the state, out of the country, into a tax haven account. They dodge most of their taxes because they can afford to pay a good lawyer and the government chooses to settle and get a fraction of their actual tax bill rather than spend millions in court trying to get all of it.
So the employee who is paid minimum wage then goes down the street and buys his food from Wal Mart (because he's on minimum wage and cant afford to spend any more than absolutely necessary). He spends his $10 there and Wal Mart again pays minimum wage to their employee and manager and rushes the rest out of the state, out of the country and into a tax haven.

Imagine this across the nation, every hour of the day, every day of the week, every week of the year... Billions of $'s all flowing out of your country and into the bank accounts of corporations where they pay less tax than ten small businesses would. All of that money is sucked out of the local economy on a daily basis.

This has already been going on for decades. It happens with banks, stores, media companies, local governments... every day this is happening there is less and less money to go around. The only thing that can be done is to continuously print more money, otherwise the flow upward to those leeches stops. More people need government assistance, which means more taxes on you, which means less spending power, which means more shopping at the corps, which means more money sucked out, which means... it's an endless cycle.

It is now being exacerbated by the fear of collapse. Those corporations are now putting even less money back into communities than they were before! They were already leeching money out of every community on the planet, but now they are putting back even less because they fear there'll be nothing left for them when the collapse does hit.

The ONLY way governments can stop this from happening is to restrict the global markets, encourage small, local business to grow, prevent the ongoing extraction of wealth from communities. But they won't do that, because the corporations have them by the balls. Every time it seems like governments might have actually grasped the issue the corporations squeeze their balls a little and threaten them.

We need to break up the massive corporations and stop them from removing wealth from the communities in which they operate. Unless this ongoing extraction is stopped, nothing will change, it will just get worse and worse.

This is not just about banking, it's about the entire process of capitalism and corporatism and the effect it has on communities around the world.

Originally posted by detachedindividual
reply to post by hawkiye

 

The intention of a corporation is to gain profit at all cost, while the small business owner just wants a nice retirement and to put his kids through college. Lets say that Starbucks makes $60 in an hour in that new store they just opened. They give their employee $10, and the manager $20, $30 is immediately funnelled out of the state, out of the country, into a tax haven account. They dodge most of their taxes because they can afford to pay a good lawyer and the government chooses to settle and get a fraction of their actual tax bill rather than spend millions in court trying to get all of it.
So the employee who is paid minimum wage then goes down the street and buys his food from Wal Mart (because he's on minimum wage and cant afford to spend any more than absolutely necessary). He spends his $10 there and Wal Mart again pays minimum wage to their employee and manager and rushes the rest out of the state, out of the country and into a tax haven.

Imagine this across the nation, every hour of the day, every day of the week, every week of the year... Billions of $'s all flowing out of your country and into the bank accounts of corporations where they pay less tax than ten small businesses would. All of that money is sucked out of the local economy on a daily basis.

The ONLY way governments can stop this from happening is to restrict the global markets, encourage small, local business to grow, prevent the ongoing extraction of wealth from communities. But they won't do that, because the corporations have them by the balls. Every time it seems like governments might have actually grasped the issue the corporations squeeze their balls a little and threaten them.

We need to break up the massive corporations and stop them from removing wealth from the communities in which they operate. Unless this ongoing extraction is stopped, nothing will change, it will just get worse and worse.

This is not just about banking, it's about the entire process of capitalism and corporatism and the effect it has on communities around the world.

DI, In both principle and practicle application I agree massive corporations foreign and domestic do remove money from individual communities and even nations.

In the current political climate I do have fear that were this to be corrected that collectivists would ruin even chances of small local business in their zeal to punish those who have more than they do.

Going way back to the laws made and applied for anti-trust and breakup of monopolies might be the way to address the anti competitive enviroment that small business has to live with. Coming up with some formula of dollars returned to the community only serves to put those dollars into hands of corrupt officialdom - nah - Maybe something along lines of "if its to big to fail, then fail it shall" or some kind of market share limit kicks in bringing divestiture of assets up for sale - this is a hard one because if done wrong it would kill kind of capitalism this country has that drives innovation and entrepenuers.

I've often heard term "global economy is us" but also have to say that since I first heard the term we've been on a downward slide economically as well as financially for the individual - its a term I associate with falling to others level rather than setting the example. Put your pants down rather than pull them up!

That said I'm ready to see tariffs on foreign trade specifically at companies like "Chinese Over Seas Trading COmpany" (COSTCO) and rampant importers like Walmart who before Sam Walton died had an American made product sales program.

Look I'd be fine paying $15-20 dollars for a tee shirt I know was made here rather than $4.95 at wally world or conversely $3 + for that head of lettuce I knew provided a job for someone other than an illegal immigrant.

In a way nearly all the current interests and controversy can be traced back to corporatism, individual taxation, immigration, investment, wars, healthcare, retirement and economic disparity.

Basically everything coming from Washington makes winners and losers on the big scale corporations operate at and I for one am sick of seeing my country suffer for it.


Wanted too add this is coming from someone who would decribe themselves as a staunch conservative...........

reply to post by detachedindividual

This video was uploaded to YT in 2011. So his belief that it would all end in Summer/Fall was clearly way off.

Second problem...

This is more of the same "I have a belief and I'll make a YT video" and then others thinking "some guy giving his opinion is EVIDENCE and PROOF, because it's a video!!!!"

He didn't give any specific date and even if he did it would not matter the proof is in the math. Even if a date was given and was wrong that does not invalidate the math. its happened to every credit based fiat monetary system in history it is mathematically inherent in the scheme. You can ignore the math to stroke your normalcy bias all you like but it does not matter the fact remains of you debase the debt based currency with continued printing of money it will crash every time!

it is past the point of no return it has little to do with how corporations take money from the community. The whole system is designed to funnel all the wealth and property from the people to the banksters at the top and that is exactly what its done. Its also the reason why the politicians have never done anything to fix it they are paid off too...

When you inflate the currency in circulation (printed or book entry) it devalues the purchasing power of the currency. When the currency is debt based (created from promissory notes on loans) you must continue to increase the debt or it all collapses. We are at the end of the cycle if they stopped now the economy would come to a screaching halt. So they keep increasing the debt to keep it going a little longer problem is they are in the last 3% of the tipping point were the currency when it goes over the edge has to be inflated exponentially to keep up an becomes worthless almost overnight...

Excellent summary of historical collapses!

lewrockwell.com...