The Bigger Picture
The last 40 years of growth has only been possible through the availability of cheap fossil fuels that drive our entire global transportation systems. As the costs of extracting oil increase, the West is going to experience huge increases in the costs of commodities and fuel. The current belief that the ‘Fracking’ Industry and shale gas can be our saviour in order to be able to sustain our thirst for oil is not practical or realistic. Huge evidence exists that show the costs of maintaining this industry are simply not viable and we are now seeing considerable losses in the US with the current drop in oil prices. This however, is also likely to be a part of the ‘financial war’ going between the East and the West as the USA tries to do everything it can to maintain its rule over the nations of the world with their dollar as the world reserve currency. Our 'Just in Time' inventory system of stocking supermarkets will be severly challenged and we will need to consider rapidly a new more localised way of living.
Not only do we live these extremely challenging Economic times, we also live in a world today where, In the opinion of most scientists today, the earth's biosphere is sick and acting like an infected organism. Despite this, most people in the Western world seem to adopt totally selfish lives in the face of major humanitarian needs.
BUT at the end of the day - as many previous presidents of the United States have all said - it is our perverse monetary system that:
causes all the distresses, perplexities and confusions or rather the public's lack of understanding of what is money that allows the rich to rule and the masses to suffer
Many economists, business people, authors and writers believe that we in the western world have all been living under an Illusion for the past 40 to 50 years. We have experienced extremely high levels of growth in most western economies because we have had access to cheap energy and we have lived with a monetary system that is designed to transfer wealth from the masses to the rich quite systematically through the payment of excessive taxes.
Most people who have lived during the past 40 /50 years have experienced a world with constant, almost unending growth and lifestyles to match. Western society knows nothing else. When the unprecedented debt bubble bursts taking values of almost all assets to much lower levels, all this will change dramatically requiring some major adjustments in the way we all operate. We will need to think what is community, how do we live in a less globalised world, what is real relationship as well as about our food and water supplies, localized cheaper forms of energy and agriculture.
Most people do not realise that Money is brought into existence out of ' thin air' by private bankers who operate a 'FIAT' fractional reserve banking system that can only survive by the continued creation of debt. With interest repaid by the taxes of the people, wealth is transferred from the middle classes to the rich. The creation of money has been "privatized," or taken over by private money lenders. Thomas Jefferson called them “bold and bankrupt adventurers just pretending to have money.” Except for coins, all of our money is now created as loans advanced by private banking institutions — including the privately-owned Federal Reserve. Banks create the principal but not the interest to service their loans. To find the interest, new loans must continually be taken out, expanding the money supply, inflating prices — and robbing you of the value of your money.
Our entire money supply is virtually created privately by banks and a mere handful of very big banks is responsible for a massive investment scheme known as "derivatives," which now tallies in at hundreds of trillions of dollars. The banking system has been contrived so that these big banks always get bailed out by the taxpayers from their risky ventures, but the scheme has reached its mathematical limits. There isn't enough money in the entire global economy to bail out the banks from a massive derivatives default today.
It is little understood that we are mainly governed today by massive trans-global corporations, many of whom are larger than some small countries. We are entering an age of consequence. A rapacious financial system, escalating organised violence, abject poverty for billions and a looming environmental fallout are all converging at the point of time when governments, religion and mainstream economists seem to have stalled.
After the 1929 Wall Street crash, legislation was passed called the Glass–Steagall Act named after Senators Glass and it Steagal, which was put in force to ensure that 'CASINO' banks would never again be able to create a financial catastrophe. The act was repealed in 1999 by President Clinton and opened the doorway to the same level of casino banking that had previously been experienced – using ordinary depositors money for extremely high risk ventures.
These ventures involved the use of derivatives which have been described by Warren Buffet as ‘highly explosive weapons of mass destruction'. It is estimated by the Bank of International Settlements (BIS) that in excess of $700 trillion dollars exist in highly complex financial instruments (derivatives) that threaten the stability of the entire global financial monetary system. Most other commentators believe the figure is now in excess of $1.2 quadrillion (that is 1.2 thousand trillion). There is any number of what many people would call 'Black Swan' events that could trigger a massive collapse in the system. In addition although we are led to believe that moves have been made to reduce these liabilities, most people understand that they are so interlinked that no one can really know the extent or amount of the liabilities that exist. Any ‘trigger’ could require Bankers in the largest of the banks in the world to take extremely heavy losses, thus creating a ‘domino’ effect and a collapse of the entire banking system which they clearly have absolutely no desire or intention to do.
A huge Financial Storm has been brewing for the past 7 years and gathering momentum each year. The levels of debt that have built up in the western world over the past few decades are now reaching unprecedented and unsustainable levels. Despite the rhetoric from governments and politicians, it is mathematically impossible to reduce the national debt because our current monetary system relies entirely on new debt being produced each day - it is the way our 'money' system works. It is clear that over the next few years, the western world is going to continue to experience some major shocks and it is therefore important that we all begin to gain an understanding about what is happening. The complexity of the subject has been intentionally exploited to keep its mysteries hidden.
Whilst the economic system is at the root of so many of the world's problems it is one of four factors: –
1. The continuous call for an unending Economic Growth
2. Increasing Energy Costs
3. An extreme form of Capitalism
4. A flawed form of Democracy
We are truly living through historic times because the whole world has never before suffered from such unprecedented amounts of debt or from a global monetary system that is literally in it’s last stages. Our banking system has for hundreds of years been in the hands of private banks and has caused untold suffering for the majority whilst the few are becoming even richer.
The western media, being mainly controlled by the few massive trans-global corporations, continues to act in unison with central bankers whose only solution to the monetary crisis continues to be more and more money printing (or should I say 'Quantatitive Easing' - a term most people do not associate with money printing). The main problem is that the majority of the public have very little idea about what has been happening to them over the past seven years and both governments and main stream media have done everything they could to try and convince everyone that we are all 'on the road to recovery'!! Thankfully, we are now beginning, at last, to see some truth being revealed about the seriousness of this debt in the media but always couched with the assurance that the UK is in a better position than anyone else. This is also not really true as we are probably the second largest debtor nation in the world.
What is desperately needed is for people to receive an education in 'What is Money' and 'How does our Global Monetary System Work' ( What has Government done to our Money?) - because if they started to understand these things they would begin to understand what lies on the pathway ahead - and it is certainly anything BUT A RETURN TO 'NORMAL
Click here to see the continiung build up in the US and UK National Debt figures as well as the 'Unfunded liabilities
What is our Future pathway likely to look like?
The Oil Journey Narrated by Pete Coyle