who can we blame for the crisis
who can we blame for the crisis in global finance
(and for any crisis in the personal finances of many of us who are disappointed with the results we have produced with our prior strategies of time management, investing, etc)?
A correspondent (whose name I will gladly acknowledge if she permits/requests that I do) wrote this:
Well, the international “finance” capital of the world – Dubai – is having trouble paying its bills. Thirty-five of fifty states have yet to balance their budgets for this fiscal year. Twenty-three percent of US homeowners owe more on their mortgages than their homes are presently worth. It seems our world is awash in unpayable debts…. At some point we’ll realize the fault lies in a monetary system based entirely on the accumulation of debt.
[she wrote more, but let’s start with that.]
I notice this kind of commentary- especially that last part- frequently. In fact, about 7 years ago, I said things pretty close to that myself as I made my first public predictions of a global credit crisis- but I said more than just that, and then added and edited my wordings over the years.
So, here is my reply to her:
you are still talking the talk of fault (blame, condemnation). However, I am going to go with that for a moment.
But is the fault the Fed’s alone? Ron Paulmight suggest that, but then again… he is overtly part of the establishment, right? He’s an agent provocateur- at least functionally- and it all comes down to this: “we do not control what the people think, but only what they
But is it even possible that the fault is the Fed’s alone? After all, it is the mainstream Americans who participate in the system as well as the Bank For International Settlements (www.bis.org) at the hub of the cartel of central banks throughout the world. It’s not a national issue (or not just that)….
And, as I have been saying with potentially nauseating repetition for the last 7 years, it does not matter what the source of the so-called problem is (or is what is happening now the solution?), but how soon we are motivated even to make personal adjustments in alignment with the clearly immense changes already evident obviously- rather than (1) ignoring it- either not noticing or just hoping it will go away- or (2) attacking it, resisting it, fixing it (or speculating about how SOMEONE “should” fix it- as in someone ELSE), and perhaps even asking (demanding?) that governments rescue or bail us out from it (rather like the Japanese have been vainly doing for two decades now?), and basically anything and everything besides… just personally adjusting!
So, while I agree with Suzi and Rhonda [other correspondents who commented on what for now I will call consumerism and spiritual ignorance] and while I also agree in many ways with [the original author], a more functional, practical definition of the problem- like as one’s own personal problem- is this: “Aha, I notice rather suddenly and with perhaps rather unpleasant surprise that I may not have been investing/organizing my finances in accord with what works well, like sustainably- At least NOT YET. Sure, I may have had some emotional reactions against it, and that was what it was… so now there is facing the reality of any anxiety under the prior angst and anger… and allowing fear to be a channel through which courage is moving me with determination into new prudent action!”
For more on the specific details of the changes underway and personal adjustments to make (from someone who predicted all of the major changes of the last several years- me), see
For more on the general principle of acceptance as key to aligning harmoniously (including profiting with) the changing world, see:
Now, here is more of what the original author had written, read in the light of what I mentioned above:
…At some point we’ll realize the fault lies in a monetary system based entirely on the accumulation of debt. Every dollar printed, as well as every dollar lent to us by a bank, is a dollar that was invented solely to generate more debt. All printed dollars are debts of the US treasury (i.e. the American people) and all bank-created electronic … dollars are debts of the borrowers (i.e.: the American people.)
The only ones getting wealthy in this system were the bankers, until – like in Monopoly – they bankrupted most of the players and found themselves unable to collect the rents anymore from the folks who were landing on their properties. They then screamed about how dangerous it was for them not to be able to collect, so we gave them even more money to reset the game. Now our debt grows exponentially larger and our ability to pay it has declined accordingly. Looks like the Ponzi scheme is about to explode.
Money, in its original format, was meant to facilitate the exchange of human creativity, not hinder it. By making money deliberately scarce, in order for it to become what we individually strive to attain (instead of a mere tool we use to achieve what society has decided is important to accomplish) was our major error.
And here is my reply more specific to her framing of the issues above:
By the way, the inflationary financial bubble did not make money scarce. That is like saying that a downpour of raindrops can make something dry.
The problem is not the bubble either, but that people have been valuing debt contracts payable in actual cash (AKA accounts receivable) as EQUIVALENT to the same amount of cash. (That is like saying that cloudy skies are the same as rain.)
In other words, an over-inflated unsustainable bubble of abundant credit MUST deflate (which appears to be cash getting scarce, when in fact there is actually quite a bit of cash, but people had been discounting the value of it, and now that error is being corrected abruptly, as in by the activities of bankruptcy courts). Yes, that deflationary collapse of the bubble/balloon produces a huge shift of ownership away from debtors to lenders. Yes, that shift may be the specific design of the system. What if it is?
Adjust now. Not eventually. Not maybe. ASAP. (ASAP means right now!)
If you’d like to reach me to find out how I have been helping people adjust, my email address is 144jr144 (at gmail.com).
- The Federal Reserve Cartel Part V The Solution (anationbeguiled.wordpress.com)
- The Truth on Rising Gas Prices (yeyoungeconomist.wordpress.com)
- Geithner Pens Another Ridiculous Op-Ed (zerohedge.com)
- Your Rotten Monetary Policy Is Wrecking Us (lewrockwell.com)
- The Greek Financial Crisis Explained (phillthedill.wordpress.com)
- Poor Caused Meltdown??? (dcwreck.wordpress.com)
- 10 Things That Every American Should Know About The Federal Reserve : (2012indyinfo.com)
- The Purpose Behind Engineered Economic Collapse (anationbeguiled.wordpress.com)
- Economic Preview: Canada’s housing market flirts with bubble (marketwatch.com)
- The Fed Cannot and Will Not Be Unleashing QE 3 Next Week… (zerohedge.com)
- Bank of Canada singles out household debt as ‘biggest domestic risk’ (macleans.ca)
- How High Can the Fed Pile Manure? (zerohedge.com)
- Tighter regulations needed against overheating real estate, household debt: TD (business.financialpost.com)
- The European Debt Crisis: A Beginner’s Guide (huffingtonpost.com)
- Fed’s Plosser Faults ‘Perversion’ Of ‘Lender Of Last Resort’ (forexlive.com)
- Citigroup, other big US banks flunk ‘stress tests’ (cbsnews.com)