Exploring Hydrocarbon Depletion
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allenu wrote: Can't an increase in efficient be considered growth as well? That is, if we go back to the notion of tying value to resources, at first, I could say that each fish I sell is worth one coupon. Later, as I improve in efficiency, each fish that I catch becomes marginally easier to catch. I realize I would like more coupons (hey, I'm greedy), and that fishing is easy enough that I decide to sell two fish for each coupon. My neighbour is still selling at one coupon per fish, so all his customers come to me instead.
I_Like_Plants wrote:And the correct term is "International Bankers" you know, the folks who set up the Federal Reserve here in the US then set up the working class in the US to fight with the working classes of England, France, Germany etc in WWI, because it was profitable!
A certain leader with some faults but the bright idea to kick out the Int'l bankers and start up a non-debt-based monetary system in Germany in the 1930s had the unpleasent experience of the International Bankers declaring war on him, and since the International Bankers own the media, we still believe now that he was the bad guy
Tapas wrote:Yes, the Federal Reserve is the Central Bank of the United States. It is privately owned. At this point the dollar is a 100% fiat currency. It is not backed by any tangible items like gold or silver. It does not cost anything for the owners to generate a million dollars except the cost of printing.
The Federal Reserve was created with the Federal Reserve Act of 1913. By this single act passed by the gullible Congress, the bankers took complete control of the financial power of the US. The US Government relinquished its constitutional right to print its own money. The Feds lends the US Government money with interests.
Let's say you deposit $1,000 of your own money into BankABC. They can now turn around and loan that same $1,000 to me charging 10% interest while giving you back a 3% interest on your savings account. Seems fair? So far, yes. After 1 year, your savings account goes up to $1,030. I repay BankABC $1,000 plus $100 in interest for a total amount of $1,100. The bank makes a net profit of $70 with this single transaction, which goes to pay for its daily operation.
So far so good. Looks a fair business. But now comes the magic of Fractional Reserve. BankABC is allowed to inflate its assets by a factor of 10. Simply put, it means the moment you deposit $1000, BankABC can claim to have 10 x $1,000 = $10,000 in their holdings.
Its gets very interesting from this point! BankABC can now loan out $1,000 to 10 individuals, each required to pay back the principal plus interest at 10%.
So by the end of the first year, the bank has made a whopping $11,000 from their initial assets of $1,000 and given you a pitiful $30 reward for your investment.
Tapas wrote:It costs mere pennies to print a $1000 bill. We the citizens pay interest on the face value for this favor. Our federal debt is 7.8 Trillion dollars. We pay an annual interest of $330 billion on the borrowed capital.
nero wrote:Let's say you deposit $1,000 of your own money into BankABC. They can now turn around and loan that same $1,000 to me charging 10% interest while giving you back a 3% interest on your savings account. Seems fair? So far, yes. After 1 year, your savings account goes up to $1,030. I repay BankABC $1,000 plus $100 in interest for a total amount of $1,100. The bank makes a net profit of $70 with this single transaction, which goes to pay for its daily operation.
This is a bit off. The bankABC could only lend out $900 of the initial $1000 deposit because it needs to keep a 10% reserve. So adjusting the numbers, after one year the depositors savings account is $1030 and BankABC receives $990 for the loan plus interest. The Bank kept $100 in it reserves for the entire year in case the depositor wanted some of his money back. The bank makes a net profit of $60 which goes out in daily operation expenses and as dividends to the shareholders.
jaws wrote:Banks don't have regulated reserve requirements anymore. They can keep or lend as much money as suits them.
Tapas wrote:Imagine this:
You have a small community of 20 men, women and children living in harmony with nature in an isolated island. The adult males are spending their time farming, growing rice and corn, raising livestock, building huts and fishing in the rivers. The women are busy raising their children, cooking, weaving clothes, harvesting the crops while the children are helping the adults in growing, gathering, and building all the essential elements to community life and learning the secrets of survival.
In this primitive culture there is no concept of money. Barter is the method of exchanging goods and services. People are trading bushels of wheat for buckets of freshly caught fish. Women are trading bamboo furniture for hand woven quilts designed by others. It is a closed community based on mutual cooperation and sharing. Every individual is contributing their manual labor to enjoy a fair share of the sum total. Nobody is getting a free ride.
70 years goes by. The population doubles. There are now 40 men, women and children living in this island. Resources are plentiful. The barter system is serving them well. Individuals are still exchanging their goods and getting to enjoy a share of the total.
Then comes an individual with a very clever idea. He introduces the concept of money. He declares what a wonderful idea it would be if instead of trading 1 bag of wheat for 2 fishes, they decide to put a monetary value to all their goods. Just look at the convenience. If you price the bag of wheat for a dollar and the two fishes for a dollar, then it would be considered fair trade to get a bag of wheat if you had a dollar to pay for it, even though you may not have 2 fishes at the very moment.
Similarly, another person is free to get two fishes if he had a dollar in his possession, even though he may not have a bag of wheat to trade upfront.
It all seems like a brilliant idea does it not?
One little problem. Where will these initial dollars come from? The inventor of this plan proclaims he will print all the dollars, as much as necessary, and lend them out at a very low interest of 2%. Any individual is free to borrow as many dollars he wants so long he pays back the principle plus 2%.
The gullible members could not see the outright fraud hidden behind this simple plan. They agree to it. It serves their short term greed. They quickly discover how easy it is to get a bag of wheat just by borrowing a dollar without first having to take the trouble of catching two fishes. This dollar needs to be returned after one year with an additional 2 cents. Big deal they think. After all, they are planning for a large family. They would have additional helping hands to increase the family wealth.
An astute reader will at once note the sinister plan that lies hidden behind this concept.
1. The clever individual who thought of this scheme does not need to do any manual labor at all! He gets to live off the labor of others. He lives off the 2% interest for every dollar that people borrow from him. All he has to do is print these dollars.
2. The population of the community redoubles to 80. The total working potential of the community has increased by a factor of 2. Twice the number of working individuals are now borrowing dollars. As the borrowing amount increases, so does the total debt owed to the clever banker. The larger the population, the richer he gets!
3. All the banker is really doing is keeping log of the energy transfer within this growing community. He is not creating any energy himself. He is simply tracking the flow of energy through an intermediate medium called a dollar. The transfer of energy is real. The dollar is fake. The dollar is merely tracking how the energy is being shared, and used. For each unit of energy being transferred, he is getting a cut.
4. The true source of all energy is the sun. The earth is getting a free share each and every year from the sun. Nobody is paying a penny to the sun to enjoy this energy. It is truly a free gift. Every living creature is entitled to this free gift.
5. The plants are converting this solar energy into food by a process known as photosynthesis. The farmers in the community are harvesting the fields. The livestock are feeding on the plants. The people are raising the chickens, goats and cattle for their meat.
The sunlight is keeping the planktons alive in the oceans. The fishes are surviving eating the planktons. Humans are consuming fishes to feed themselves.
6. Notice, all of these basic life processes are happening without the input of a single fake dollar. Our monetary system is nothing but a superficial fake construct. However, the benefits of the free source of energy - the sun, is being radically skewed by the introduction of money. People with more dollars, get to enjoy more than their fair share of energy.
7. Notice another important thing. Fossil fuels are nothing but stored solar energy - a product of ancient photosynthesis. Individuals who are controlling the oil are getting instant access to a treasure trove of stored energy.
8. As the human population grew from 1 billion to 6.5 billion, not only did the potential for manual work increase 6.5 times, it actually increased by a factor of several hundred once you factor in the energy released from burning about 1 Trillion barrels of oil, coal and natural gas.
9. All this energy transfer has been tracked by a man-made entity called money. The more people expend energy, the more fiat dollars that need to be printed, and higher the debt load of the population that is owed to the central bankers.
10. Money, which should have been used as a convenience and issued by the government, now becomes a sinister tool to enslave the population making them life long debt slaves to the central bankers.
11. In the final end-game, the central bankers takes over every nation and controls the entire wealth of the planet.
12. The game is rigged from start. The concept of usury - I give you a dollar, you give me a dollar plus something is outright fraud and flies against all natural laws. You cannot get more than you give.
13. Ultimately this flawed system has to collapse. This Ponzi scheme is dependent on perpetual growth. The point at where our energy peaks - meaning no more growth, will also mark the beginning of the collapse of our monetary system.
spot5050 wrote:All you are saying is that we're at the beginning of the end of this monetary system. Boo hoo! You don't say how long you think it will last. Say it's another 300 years then we've done better than the Romans.
No dynasty lasts forever my friend. You are stating the obvious; very cleverly and with lots of big words, but still you are stating the obvious.
Tapas wrote:Perhaps then, when all is lost, a bulb with light up in the minds of the masses. They would realize their own follies. They would understand the consequences of unbridled growth and gluttony in a finite fragile world. Perhaps then, mankind will muster the courage and vision to unite and work collectively to rebuild this planet one brick, one garden at a time.
… None of them [the political parties] addresses the fundamental flaws in the UK banking system which sees 97% of new money created by commercial banks as profit-making loans appearing by magic in bank accounts without deposits to back them up.
This system effectively provides a £20 billion subsidy to the banks according to the analysis presented by the respected economist James Robertson …
.tapas wrote:Similarly humans exploit other humans. The entire history of the human race can be summed up in one sentence - clever people exploiting foolish people. Nothing has changed in the last 1 million years of human evolution. So long there is a difference in intelligence amongst humans, this characteristic exploitation will continue.
ubercynicmeister wrote:Blind ambition, Greed and lust-for-power is noted amongst both the clever and the stupid.
The clever have the disadvatage of having to think about things. Either before or after they do it.
The stupid, au contraire, are particularly gifted to suit today's society - they do not think about long-term consequences, because they cannot think.
I agree with you, the "fractional reserve + fiat currency" grow-or-die system we have had foisted on us is a mess and is the primary reason for Peak Oil.
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