Psalm 118:22 – “The stone which the builders refused is become the head stone of the corner.”
Have you heard about the pirates off the coast of Somalia who are hijacking cargo ships for ransom? Well we have our own pirates here. Unfortunately for us they are not just armed farmers and unemployed fishermen, but our own private aristocracy. Right now the citizenry of the world are being held hostage by these pirates who are demanding our governments debase our currencies and productive potential to prop up their poorly designed business models.
It’s interesting to observe all the “experts”: from the CEOs to the economists all expressing their genuine confusion and frustration at this continuing global financial crisis. Like Menard Madoff did with 50 billion, collectively there are 3 to 4 trillion in losses still to be realized in the economic decline. Like any pyramid scheme, the global economy over the last few decades has produced growth from the top down while systematically eroding the economic base. But any pyramid scheme, like any cancer, must continue to grow or it must cease to exist. That is because pyramids are not built from the top down, if they were we’d see sky scrapers being build from the top floor down to the foundation.
The growth and wealth that have been created over the past decades came as a direct result of the exponential expansion of the outstanding amount of credit and debt in the economy. As with any pyramid scheme, once continued expansion ceases to bring new capital into the system the system effectively seizes up and collapses under its own gravity. We can take consolation that in the failure of any pyramid scheme those at the top stand to fall the farthest. Those at the bottom who bear the weight of the structure have been tapped out, and have been for years…
We are at a crossroads; we can either agree to the demands of those who threaten to take all of us down with them, or we need to fight aggressively the global consortium of private banking lead by the controlling interests of the world’s central banks. Government is the only means that the vast majority of people have to leverage some control over the racket that is the private control of the wealth of nations. In Somalia, the lack of government allows such pirating to flourish as the only means of economic activity. In the United States and around the developed world, poor governance has allowed massive inequity and injustice to prosper. In somewhat biblical language, we are in a period of reaping what has been sown.
Let’s hope that a renewed citizenry can take up and shoulder the burdens of the obligations of world stewardship. The rapidly changing demands of human existence on earth shall provide unending challenges to which we can apply our capital resources. The role of responsible government is to use the material and human capital of its people to work to solve these needs. As we prepare to plant the seeds of future growth, millions of individual jobs await those prepared to re-build the engines of the economy, however the political will to let bad business fail and support future growth is essential. Can we as a people adapt as a society without being forced by war, or famine, or disease, or crisis?
On the back of the dollar bill in your wallet there is a symbol of a pyramid with 13 stacks of gold bars with a giant eye within a circle of light. In 1971 when the United States effectively began issuing fiat or floating currency the value of that dollar was allowed to shrink little by little as we issued more and more credit and created more and more debt. In the almost 40 years since then, we have in effect financed our economic growth. The choice is now ours to either continue to pass on to our children the legacy of social decadence financed through massive debt, or to begin the work of fixing what is broken from the ground up.