Summary...

1. Money is just a shared belief
2. But its belief motivates real value creation
3. It efficiently allocates resources according to our values
4. It encourages people to cooperate and invest in the future
5. The system is close to breakdown due to over creation
   

There is no automatic 'right' for money to exist. Or a 'right' to save for a secure future. It always relies on societies trust and cooperation. Even gold requires people to believe in its future value.

But society benefits enormously if people do believe in money. And the more money that can be 'believed into existence', the more society benefits.

A good analogy is heaven and hell. They may not be actually true, but the simple belief can seduce people into acting virtuously. The more 'fiat' rules of virtue are created and believed, the more benefit society can receive. The same is true of fiat money.

In a rational society, neither money nor religion would be needed to motivate either virtue or value creation. But once robust beliefs in private property are established, people then find themselves in competition with society for what they can get, and this can seduce a more beneficial value creating social behavior. People may not naturally trust each other, but they will trust in the $.

So any ruling classes will naturally create money to seduce people into creating the real wealth that can follow. Once believed, money helps fuel technological progress from which military superiority and political power can follow.

But the whole of society benefits from this trick. Capitalism seduces people into trading their time and energy to create social and economic values, the way religion seduces people into moral virtues with stories of heaven and hell.

There is no amount of either virtue or money that is too much for a society to benefit from. The problem is that both systems are founded on a fiction that require the masses to be ignorant of what is true.

And what is true is that authentic virtue and wealth creation are based on only one underlying universal belief - that of emotional empathy. A realization that we are all part of a unified whole. And the wisdom to know what this means and act accordingly.

Even if people believed only in a money backed by gold, the ruling classes would just have to confiscate all the gold.

Not because they want gold, but because they want to control the amount of money in the system. And if gold is all it takes for people to believe in their money - they'll use gold.

They might even say gold & fiat money are convertible, so long as too many people don't call their bluff.

Some people think all money is debt, but this is only partly true, like all money is gold, or a house or an antique.

Some people do sell their future earning potential for money to spend now, and those indentures or debts do have tradable monetary value, just like homes and cars. But they are not the basis of all our money.

If democratic governments just created money without accepting it as a social debt obligation, then there would be no limit on the amount of money they would produce and spend.

That is why the fed is needed, to try to keep the government honest. So society can keep faith in their money and all the virtues that flow from that faith.

There are several effects of personal debt

1. It stimulates economic demand now at the expense of demand in the future.
2. A man in debt is highly motivated to keep working hard, which then creates future values for himself and for society.
3. Like gold and all proerty, debts can be monetized, increasing the legitimacy of all wealth held as money.
   

There are only two foundations underpinning money...

1. Real values - property & information
2. Promises by people to create future values - debts
3. Both are effected by honesty and market valuations

This belief that private banks create money as debt to enslave all the people is mistaken. Both governments and banks conspire (rightfully) to create the maximum amount of trust in, and volume of money in society.

Governments have no intrinsic wealth, they need to create legitimacy first, and from legitimacy comes the ability to print the money they desire.

Banks, taxation, courts, gold, prisons, democracy etc. all provide the cover of legitimacy. And once people believe in their money, they can multiply it at no cost and at no interest. 'Private' banks accepting government 'bonds' just help create the cover.

The fed, by accepting government bonds (promises to repay) for its money, is merely trying to restrain the government from destroying all of our money.

The ruling classes, democratic governments and the wealthy, all want as much money in circulation as possible to stimulate the maximum economic activity, which indirectly benefits the maximum number of people. And to ensure the maximum speed of technology progress - to ensure military dominance.

One of the main problems is that as the system matures, and even without excessive government printing (inflation), wealth will always 'trickle up' to the top, and debts trickle down to the bottom.

This is not because capitalists or governments are evil, it's because, despite what the declaration of independence says, people are not all created equal.

Some are exceptionally beautiful, smart & wilful. They have rich parents or are lucky in numerous other ways.

Government is in a constant battle to help (and to buy votes from) the majority of not so genetically gifted or lucky members of society.

These create differing problems, but both jeopardize our belief in the system of money as a whole.

Too much wealth at the top creates...

1. Wealth satiation, laziness, complacency and speculation by the most wealthy, who are also those most able to benefit society.
   
   Their enormous talents become lost to society as a whole.


2. The mis-allocation of labor and resources
3. Too much power in the hands of government and the elite
   
   

And too much debt at the bottom can lead to...

1. enormous suffering for those least able to cope
2. mass defaults of debt promises
3. Loss of faith in ones society
4. And can even lead to social breakdown
   

For some reason, the ruling classes in America seem to be actively seeking to trigger a financial collapse, by greatly accelerating the amount of money society can credibly support.

They are accumulating and multiplying debt obligations they have no chance of servicing. The monetization of these obligations is flooding societies around the world.

This greatly increases the wealth of the rich and the debts of the poor and stimulates enormous economic activity - jobs, affluence etc.

And even though numerous carrying mechanisms have been devised to support all this money - derivatives etc. At some point, the system will break down, defaults will arise and people will begin to lose faith in money as a safe store of value.

I don't know if this is accidental or part of some wider plan or conspiracy. But it will likely cause a great deal of suffering if we do lose faith in our system of money. But at the same time, once it's all over with, the system of capitalism could restart the whole process again at a reset value.

Perhaps the ruling classes want to create the crisis now while they still control all the levers of power. While America is at the peak of its military and economic power. Rather than waiting for emerging technologies around the world to gradually erode their advantage. Areas like biotech, nanotech, computing, the internet, direct democracy etc. could greatly diminish their current systems of secrecy and power.

Or perhaps their growing addiction to money, power and hubris has left them blinded to the moral hazard they are creating.

Or perhaps they think, if they can destroy the existing money system, they could then replace it with a new global electronic currency they can totally control.

One ending all tax evasion, and controlling completely what people can buy and sell, and of course who can buy or sell.

Or perhaps, just for the raw political power and world domination such a crisis could be expected to draw to them.

Some kind of new world order.

Or maybe it is some ideological or religious end times prophecy they secretly yearn to engineer.

But I'm hoping social cooperation, information exchange and personal technologies will make us all much more resilient to any economic or political crises they may create. Whether through accident of intent.