Friday, October 10, 2008

From Capitalism To Creditism Have We Lost Our Way?

The Federal Reserve System, a giant quasi-government privately owned corporation was empowered in 1913 under the Federal Reserve Act. The bill passed Christmas eve in the dark of night when many American Patriots were on Christmas vacation with their families.

Supporters argued that the Government is not suited to handle complex banking issues and would ultimately devalue the dollar and wreck the American economy. The irony today is monumental because from 1913 to today the system of credit to bankers for money has failed to the "N-Th" degree. If a dollar in 1913 bought a dollars worth, today that same dollar purchases about .02 Cents worth of 1913 goods.

This problem was the direct result of inflating the dollar supply and issuing credit to Americans who have lost a record amount of industry and productivity since then to now. Our entire economy rapidly moved from a manufacturing based economy to a service based economy where our nation is now dependent on slave labor from other nations who produce the inexpensive oil based products we love so much.

The crux today is that we have become completely dependent on credit in America, and of course I call this way of doing business "Creditism" where a majority of Americans cannot afford a home, a car, Furniture, a refrigerator, or stove. Bankers solved this problem for us with credit cards, consumer cards, and payment schedules that can drag on for 5-30 years.

As long as "Creditism" is alive and well and cheap affordable interest rates exist Americans continued to shop for new cars and invest in homes for profit. What we are seeing today in the global credit markets is the failure of these banks not only in America but across the world. Fear is rampant credit markets are frozen and investors are are scared.

The biggest fear is that Creditism is dead and now Capitalism is back, the party is over there is no borrowing money from foreign banks to live large off of small payments. Americans may now be forced into even greater productivity, and will need to reinvent the notion of trade and trust.

One thing I always believed is that in order for America to succeed in the world, and as a nation, we must take education seriously. Other nations, and especially China, graduate more scientists and engineers than the United States this poses what many experts have agreed is a "Brain Drain" that impacts the competitive nature of our country. Without a highly educated and skilled workforce America will be left in the dust globally. Big corporations, mostly those in science and technology here in America are increasing moving their companies off shore, or importing highly skilled workers from other parts of the world to solve their employee problems.

Without a highly educated and skilled workforce America could expect increased competition among unemployed workers for unskilled labor. This workforce, once more appreciated than today, does not yield the wages required to maintain the high standard of living that Americans were accustomed to. Moving into the next decade is going to be challenging, and without taking education in America seriously it will be even more difficult, if not impossible, to compete in the world wide global village that has been created.

Self serving bankers have historically steered clear of Capitalism. They still favor the concept of Creditism and it still continues to be promoted by the banks. Americans, many not knowing any better, embrace the idea that we can own things by borrowing money, paying interest and making payments on those items. Some may disagree but I personally believe that credit is the illusion of ownership, I dare call it a Ponzi scheme that caters to our consumer desires rather than the nurturing of sound economics. Sound economics being what Americans desperately need right now Savings, low credit card debt, more income, more education, and competitive skills to compete in the global economy. Until we make this as important as fighting the war on terror, than the growing group of despondent Americans will take to the streets in crime sprees to create an economy not based on productivity but criminal enterprising. This is something that any big city Mayor in Connecticut knows real well. This is something prison wardens know real well, and ignoring the millions of American's in prison, homeless and broke is not the answer.

1 comment:

Anonymous said...

Capitalism to Creditism - it was a great theory when I first came-up with it. http://citation.allacademic.com/meta/p_mla_apa_research_citation/1/1/0/1/2/pages110123/p110123-1.php
Odd, is seems even though I have been working on this theory for some eight year now and written a lot about it.., and presented it all over the place, not one person wants to ask me how it really works or what is going to happen next. Guess there are more important things than just being right for eight year?