I agree with Rodney Shakespeare (noted expert on Binary Economics, and discussant on GJM ) that worldwide present economic *remedies* are creating more of the tortures which caused the economic collapse in the first place.

What good is any infra-structure, *make-job* government *investment* when the money (or credit) is key-stroked out of thin air and then lent at compounded interest, which adds to the stupendous existing debt load? It's like using a flame thrower to put out a building fire.

There's more knowledge about the failings of the existing worldwide banking/monetary systems thanks to the Internet, but it has yet to make any sizable dents in governmental public policy –– anywhere in the world, not just the U.S. and England.

I believe some change is inevitable just by doing the math: current debt cannot possibly, ever be repaid. Real economic production/consumption simply cannot pay for it.

To turn this economic ship around is really simple, but nobody in government seems to have the will to do it. Like Rodney says, open up a new, interest-free loan supply from the central banks to qualifying businesses who truly are interested in spreading productive capacity to ALL their stakeholders, and not just to make management of the firm rich.

As disclosed in the company's annual proxy statement, the company I work for pays on average for capital compounded interest at 6.5% This expense stand between my company comfortably existing in the economy or slowly being bled into bankruptcy.

At stockholder meetings, I bring up this FACT, and the FACT that we could attract capital differently (like through worker and customer sharing patronage equity in our assets) and they all look at me like I'm crazy!

I was reading J. Krishnamurti the other day. He wrote in "You are the World" (circa 1972) that mindless searching for "truth" is really futile. Because the searching mind can only find what it already knows; the human mind doesn't have the capacity to find the unknown. This is why we must discipline ourselves to think in a meditative sense, where we are truly open to new revelations that can only be revealed when we empty our minds, or calmly switch it off.

The mind's vision is the projection of its own conditioning. We must extend out past what we have been taught or what we *think* is real. One can see things like the monetary/banking system has totally enslaved humankind. But this can only come when we lose ourselves and observe clearly like a mirror what's staring us fiendishly in the face.

Steve Nieman
On Jan 27, 2009, at 12:51 AM, Rodney Shakespeare wrote:

3. As regards the present system being to blame, it is necessary to say why the financial/economic system is to blame and then provide a practical and desirable way to change it.
I mention this because in the last four weeks I have done or participated in nine TV or radio broadcasts of one sort or another and five were twenty five minutes or more (of which one was a televised broadcast of a one hour lecture) and am putting across the following message:-
a) The banking system is to blame for the global economic crisis which will soon become a slump. Present 'remedies' are creating more of the thing which caused the problem in the first place.
The banking system is responsible because it creates money out of nothing; adds interest, as well as administrative cost, and does not direct the money to the development and spreading of productive (and the associated consuming) capacity ) so as to achieve a balance of supply and demand with producers and consumers being the same people. The result is huge, unrepayable debt and an economic system which is profoundly out of kilter with little relation to the needs of a real economy as well as social and economic justice
b) The solution is to stop the banking system creating money -- let it lend its own capital and, with permission, the deposits of customers. This is done by a gradual rise to 100% bank reserves.
At the same time, open up a new, interest-free loan supply from the central bank (administered by the banking system which may charge administration cost) for the purpose of developing and spreading productive capacity and forwarding social and economic justice. See the diagram at www.binaryeconomics.net
Rodney Shakespeare.

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