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Money Is A Form Of Social Control And Most Of Us Spend Our Entire Lives Trapped In An Endless Cycle of Debt That We Never Escape Until We Die, Those That Own Our Debts Keep Getting Richer!


by Michael

Money Is A Form Of Social Control And Most Americans Are Debt Slaves - Photo by Serge Melki from Indianapolis, USA

Is America really “the land of the free”?  Most people think of money as simply a medium of exchange that makes economic transactions more convenient, but the truth is that it is much more than that.  Money is also a form of social control.  Just think about it.  What did you do this morning?  Well, if you are like most Americans, you either got up and went to work (to make money) or to school (to learn the skills that you will need to make money).  We spend a great deal of our lives pursuing the almighty dollar, and there are literally millions of laws, rules and regulations about how we earn our money, about how we spend our money and about how much of our money the government gets to take from us.  Not that money is a bad thing in itself.  Without money, it would be really hard to have a modern society.  Unfortunately, our money is based on debt, and debt levels in the United States have exploded to absolutely unprecedented levels in recent years.  The borrower is the servant of the lender, and if you are like most Americans, nearly every major purchase that you make in your life is going to involve debt.  Do you want to get a college education so that you can get a “good job”?  You are told to get a student loan.  Do you want a car?  You are encouraged to get an auto loan and to stretch out the payments for as long as possible.  Do you want a home?  You are probably going to end up with a big fat mortgage.  And of course I could go on and on and on.  The cold, hard truth of the matter is that most Americans are debt slaves.  Most of us spend our entire lives trapped in an endless cycle of debt that we never escape until we die, and meanwhile our years of hard labor are greatly enriching those that own our debts.

Have you ever found yourself wondering why you can never seem to get ahead financially no matter how hard you work?

Well, it is probably because you have gotten yourself enslaved to debt.

Just consider the following example about credit card debt from aformer Goldman Sachs banker

On the debt side of things, how much does your credit card company earn if you carry just an average of a $5,000 credit card balance, paying, say, 22% annual interest rate (compounding monthly) for the next 10 years?

In your mind you owe a balance of only $5,000, which is not a huge amount, especially for someone gainfully employed.  After all, $5,000 is just a quick Disney trip, or a moderately priced ski-trip, or that week in Hawaii.  You think to yourself, “how bad could it be?”

The answer, including the cost of monthly compounding, is $44,235, or about 9 times what it appears to cost you at face value.

But a large percentage of Americans never pay off their credit cards at all.  They make small payments each month, but then they just keep on adding to their balances.

In the end, that is financial suicide.

If you carry an “average balance” on your credit cards each month, and those credit cards have an “average” interest rate, you could end up paying millions of dollars to the credit card companies by the end of your life…

Let’s say you are an average American household, and you carry an average balance of $15,956 in credit card debt.

Also, as an average American household, let’s assume you pay an average current rate of 12.83%.

Finally, let’s assume you carry this average balance for 40 years, between ages 25 and 65.  How much did your credit card company make off of you and your extreme averageness?

Answer: $2,629,618.64

Sadly, approximately 46% of all Americans carry a credit card balance from month to month.

How stupid can we be as a nation?

When you become enslaved to the credit card companies, your toil and sweat makes them much wealthier.  It is a form of slavery that does not require anyone pointing a gun at you.

But we never seem to learn.  Incredibly, 43 percent of all American families spend more than they earn each year.

As the chart below demonstrates, consumer credit actually declined for a short while during the last recession, but now it has turned around and the growth of consumer credit is on the same trajectory as it was before the last economic crisis…

Consumer Debt

Today, the total amount of consumer credit in the United States is 15 times larger than it was 40 years ago.

And every major “milestone” in our lives typically involves even more debt.

-The total amount of student loan debt in the United States recently passed a trillion dollars, and approximately two-thirds of all college students graduate with student loan debt at this point.

-Total home mortgage debt in the United States is now about 5 times larger than it was just 20 years ago, and mortgage debt as a percentage of GDP has more than tripled since 1955.

-Car loans just keep getting longer and longer, and approximately 70 percent of all car purchases in the United States now involve an auto loan.

-Want to get married?  That average cost of a wedding is now $26,989which is probably going to mean even more debt unless you have wealthy parents.

-Do you have a serious medical problem?  According to a report published in The American Journal of Medicine, medical bills are a major factor in more than 60 percent of the personal bankruptcies in the United States.

Are you starting to understand why approximately half of all Americans die broke?

And I have not even begun to talk about our collective debts yet.

Government debt is a collective form of debt.  You may not have voted for any of the politicians that have been racking up debt in your name, but part of it still belongs to you.

Since the year 2000, state and local government debt has more than doubled.  These are collective debts for which we are all responsible…

State And Local Government Debt

And of course the biggest collective debt of all is the U.S. national debt.

In a previous article, I discussed how the national debt has exploded out of control in recent years.  If you can believe it, the U.S. debt to GDP ratio has increased from 66.6 percent to 103 percent since 2007, and the U.S. government accumulated more new debt during Barack Obama’s first term than it did under the first 42 U.S. presidents combined.

When you break things down by household, the numbers look even more frightening.

During Barack Obama’s first four years in the White House, the amount of new debt accumulated by the federal government breaks down to approximately $50,521 for every single household in the United States.

And as I have mentioned previously, if you started paying off just the new debt that the federal government has accumulated during the Obama administration at the rate of one dollar per second, it would takemore than 184,000 years to pay it off.

Well, you might argue, none of that debt will ever be paid off in our lifetimes.

And you would be right.

But what we are doing is consigning our children, our grandchildren and all future generations of Americans to a lifetime of debt slavery.

How nice of us, eh?

Over the past 10 years, the U.S. national debt has grown by an average of 9.3 percent per year, but the overall U.S. economy has only grown by an average of just 1.8 percent per year.

How do we expect to continue doing this?

Fortunately, more Americans are starting to wake up to how foolish all of this is.

For example, the following is what Home Depot Founder Kenneth Langone told CNBC on Tuesday…

“The fundamentals haven’t changed … And we don’t know when the storm is going to hit,” he predicted. “It has to happen.If you look at our debt to GDP, eventually you reach a point where there’s no turning back.”

He used an analogy to make his point. “If you had one meal left, and you had your grandchild with you, would you eat if or give it to your grandchild?”

He said all people would say “give it to my grandchild.”

But pursuing the president’s vision, he argued, “[Is] eating the grandchildren’s breakfast, lunch and dinner right now. And the [grandchildren] haven’t been born yet.”

What we are doing to our children and our grandchildren is beyond criminal.  We are selling away their futures in order to make our lives more pleasant.

Right now, we are stealing more than 100 million dollars from our children and our grandchildren every single hour of every single day.

So where is the outrage over this theft?

Sadly, most Americans don’t even realize that all of this is by design.  When the Federal Reserve system was created back in 1913, it was designed to get the U.S. government trapped in an endless spiral of debt.

And it worked.  Today, the U.S. national debt is now more than 5000 times larger than it was when the Federal Reserve was first created.

Our society has become addicted to debt, and that means that we have become addicted to slavery.

We are not the “land of the free”.  The truth is that we are now the “land of the servants”.

Over the past 40 years, the total amount of debt owed in the United States (government, business, consumer, etc.) has grown from less than 2 trillion dollars to more than 55 trillion dollars

Total Credit Market Debt Owed

So who benefits from all of this?

I talked about this in a previous article.  The ultra-wealthy and the international bankers make enormous profits by lending money to all the rest of us.

According to a stunning report that was released last summer, the global elite have up to 32 trillion dollars stashed away in offshore tax havens around the globe.

How did they get so much money?

The borrower is the servant of the lender.  They have gotten rich at our expense.

But most people live their entire lives without ever understanding how the game is being played.

Today, most Americans see that the Dow is back above 14,000 and they hear the mainstream media telling them that happy days are here again and so they just believe that things are going to turn out okay somehow.

And it certainly does not help that most people seem to let others do their thinking for them.  In fact, about 23% of all Americans can’t even read at this point.

So is there any hope for us?

Please feel free to post a comment with your opinion below…

Money - Photo by selbstfotografiert

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  • http://www.facebook.com/john.turmel John KingofthePaupers Turmel

    Jct: If you were French, you’d appreciate how the mort-gage contract is killing the economy. Mort is Death in French! What else do you expect from a death-gamble economy but a lot of corpses. Everybody borrows 10, everybody owes 11, musical chairs with money and too much debt. Wake up, join a timebank barter system and stop paying the banksters their vigorish.

  • http://twitter.com/mentalsparring MentalSparring

    Yes

  • Eric V. Encina

    Debt Money System remains to be a terrible sham and scam of the 21st century. The Banking System Rubrics must be destroyed before it can totally destroy us into ashes.
    We have the burden of proof against the banking system.
    Let’s start the rebuttal on the crimes of the banking system. I am sure anyone who reads this article has rebuttal evidences that can be enough to pronounce judgment against the Banking System and the bankers on the crime of the MONOPOLY OF CREDIT.
    Whatever the Bankers’ “ratio legis” – legal reasonings or grounds in defense of their debt-based-at-compounded-usury system, it can be toppled down by the conspicuously dreadful effects and evidences of casualties of the banking crimes against the people.
    While it’s impossible, under the present controlled circumstances, influences and conspiracies existing, by design, to quash the operation of the banking system by judicial body of the land or by the Supreme Court, it must be the PEOPLE who would pronounce judgment, by rights of citizenship against the bankers.
    The bitter fight would be between PEOPLES VERSUS THE BANKERS. “The issue which has swept down the centuries and which will have to be fought sooner or later is the people versus the banks.” – Lord Action.
    The fight has become gradiatorial by circumstances and by events.
    I am convinced that WORLD DEBTS OF NATIONS to banking system cartel are all odious by adroit conspiracy, based on “ex nihilo” creation of money. And on this premise, it is genetically criminal, and therefore must not be repaid. On the Law of Reparation, the Bankers must return what they have stolen, extorted, scammed, racketed both by legal and illegal means, and thus countries must take initiatives to establish a new financial-economic system for justice, equality and financial security for all.
    The only obvious risk is that bankers might likely rest back through whatever adroit and atrocious methods and means.
    Debt Moratorium is a sham and therefore, futile by principles. Debt Management is futile by its rubbish theories of voodoo economics. WHAT WE NEED IS WRITING OFF DEBTS ALTOGETHER AND CREATE MONEY DEBT-FREE BY THE PUBLIC BANKING SYSTEM BY LEGISLATION, BY THE AUTHORITY OF THE GOVERNMENT AND BACKED UP BY THE PEOPLE.
    Higher percentage of citizens in those highly indebted-addicted-nations including USA and EU are already in severe “MENTAL-MORAL-EMOTIONAL-SPIRITUAL ANGUISH” other than penury, hunger, unemployment, homelessness, indebtedness and despair. All these are becoming largely unbearable as wanton as millstone at the back of everyone while crimes continue unabated by financial-economic criminals, of money manifa and devil-sold-out politicians, alas, with impunity.
    The Banking System is a “malum in se” or evil by itself as its major part is a latent defect to majority of people. It has been conceived in iniquity and operating, thriving in pestiferous crimes of leeching off people’s economic life-blood, which is money.
    People’s Judgment Against the Bankers is not like passing through Kangaroo Court. It’s about a judgment of facts, de facto, the voice of the people about the debt money at compounded usury system crimes, in statu qou, is already an evidence to sustain.
    The time is indeed ripe to reclaim, by de jure, or by right such inalienable financial-economic bill of rights. ELIMINATE DEBT AND COMPOUNDED USURY AND REPLACE IT, de novo, by DEBT FREE MONEY SYSTEM with “dividend” to every MAN, WOMAN, CHILD from the cradle to the grave, to be valid in perpetuity for all people, by God’s will.
    The illusory promises of the money-poisoned, nasty-muddy politicians must also be totally dispelled and abhorred. Their negligence other than betrayal to their constituents is inexcusable and unpardonable.
    THE ONLY HIDDEN ASSET OF THE BANKING SYSTEM is the creation of money out of nothing – the fractional reserve banking system, otherwise, bankers do not have any real assets of their own at all.
    The extraordinary remedy, after all our tremendous exhaustion, is to make the system collapse by its fatal course, and as such, change the ENGINE OF DESTRUCTIVE FINANCE. This must be exigible, not just by exigency, by people’s mandate and legitimate demands in the 21st century.

  • Big M

    “How stupid can we be as a nation?”

    I’ll tell you how stupid. Nobody actually has to pay on these credit cards, for a number of reasons. Let’s start with the fact that there is no valid contract between the “borrower” and the “lender.” Did anybody from the credit card company sign that piece of paper that YOU signed to activate the card? Didn’t think so. Also, there was no informed consent. The credit card company never informed you that it had NOTHING to lend you, and the credit was created by your signature. The credit card company could never produce either a signed affidavit or an itemized invoice swearing under penalty of perjury that it “loaned” you anything of any tangible value — what is legally termed “consideration,” or “the thing exchanged.” This is virtually the same for any “loan,” be it for college, a car, a house, whatever. In other words, the bank suffered no loss at all. Here’s an extract from an article that says it all:

    “So where does the bank get the money it “loans”?

    “The truth is that the bank doesn’t have any money to lend
    you. When you walk in the door, their eyes light up because you’ve brought the
    money with you. What they need from you is your signature, on a loan
    application or promissory note. While you may think you’ve just given them a
    signed pledge to pay them back their money, you’ve actually given them a signed
    cheque for the full amount of the loan.

    “The promissory note you’ve gifted to them is a negotiable
    instrument that a bank can quickly convert to cash, sell to an investment bank,
    or use to purchase government bonds. The bank treats your promissory note like
    a cheque and stamps the back of it “pay to the order of ABC bank, without recourse”
    and lodges it in a transaction account in your name, as an asset of the bank
    (But they don’t tell you that).

    “We know that promissory notes are valuable and are used to
    fund loans because the Federal Reserve Bank tells us so. In Modern Money
    Mechanics, published by the Federal Reserve Bank of Chicago, it says on
    page 6:

    “[The banks] do not really pay out loans from the money they
    receive as deposits. If they did this, no additional money would be created.
    What they do when they make loans is to accept promissory notes in exchange for
    credits to the borrowers’ transaction accounts. Loans (assets) and deposits
    (liabilities) both rise by [the amount of the loan]. Reserves are unchanged by
    the loan transactions. But the deposit credits constitute new additions to the
    total deposits of the banking system.”

    “There is a lot of information in those six sentences. Here
    we have it confirmed from the Fed itself, one of the biggest central banks in
    the world, that money is not loaned out of customers’ deposits, because no
    additional money would be created. Therefore, each new loan must create new
    money. In order to bring this new money into existence, the bank monetizes your
    promissory note and lodges it as an asset of the bank. Of course, they also
    balance it on their books as a liability, because this money is legitimately
    owed back to you.

    “The key word in the above excerpt from Modern Money
    Mechanics is “exchange”. The bank enters credit
    in your account in exchange for your promissory note. So, when you
    signed up for a loan, you actually gave the bank the money to fund it.

    “The Fed clearly says that reserves are unchanged by the
    loan transactions, confirming that they did not loan you any of
    their money. The money unquestionably came from you. Again, the Fed clearly
    states that your promissory note constitutes new additions to the total
    deposits of the banking system. The Fed further admits that it is you, the
    borrower, who funds the loan when they say that assets and liabilities both
    rise by the amount of the loan. This can only happen when new money is
    deposited with the bank – your money. Assets and liabilities would never both
    rise if the bank loaned you existing funds belonging to its depositors or its
    shareholders.”

    I could go on here, but that should suffice.