When playing Starcraft (I used to do it when in university, what a time we had…), typing “show me the money” in the chat room is considered a cheat, as it gives you a bonus of 10.000 minerals and gas :-)
In real life, especially during this financial crisis, you can scream “Show me the money!” as hard as you can… you can beg, try to have sex for them… no one will give you anything. Working hard might be a solution, but before even considering that, lets see how we got here and where we are going from here.

First of all, after I spent some time trying to understand why is the economy melting down and why people’s savings are going down the toilet, I came to the following conclusion: is all because human nature is naturally too greedy. Brilliant, right? :-)

Okay, now lets talk “facts”. This is a case against the fiat monetary system as it is today, and not necessarily against the lack of regulations the government was supposed to impose on the banks, as if there would be no fiat monetary system, there would be no huge government, central banks or financial institutions too big to fail. (I will illustrate the story with three quotes from the movie Watchmen (2009) that I’ve seen last night and that I’m considering one of the best movies ever)

Lets say there are some guys controlling the financial system, let’s call them “bankers“, there are some guys that wants us to think they are are controlling the financial system, let’s call them “politicians“, and there are some guys using the financial system, let’s call them us “slaves“.
Politicians are the representatives of slaves while the bankers are taking care of slaves’s savings (if they keep them in banks as cash or under some other financial forms). Since they are all humans, they are all greedy (TBD). So they all together tried to come up with a plan, to have some more money without working for them. The main problem was that any plan they were to produce, wouldn’t work if they were all aware of it, so politicians and bankers started a plan without letting slaves know about it.

The plan went as follows:

1. How politicians made money without working for them
By using what’s called lobby (in some countries they are calling it corruption), bankers did convince the politicians to remove or not to implement some “stupid” rules that were preventing them from lending the slaves with more money they actually had in their treasuries (mainly from deposits) and to play in a reckless way with the investments they were in charge of.

2. How bankers made money without working for them
By being able to lend more money than they had in their treasuries and to give loans to everyone who asked for one, the bankers were able to create money out of fin air (also known as electronic money), so they gained more income from the interests they were receiving for the increased number of loans they started to offer.

3. How slaves were screwed made money without working for them
Slaves were able to buy bigger houses, powerful cars, afford longer trips, eat fancy food, retire earlier, etc., just by getting lower interest rates, on longer terms and unsecured loans from the bankers.

And they lived happily… until last autumn (2008). Why did the happiness stop?… Simple, because the slaves got so much in debt that they couldn’t even afford to spend money on the water they were flushing the toilet with.

Nite Owl II: What the hell happened to us? What happened to the American dream?
The Comedian: It came true. You’re looking at it.


What we have now:
- We have lots of people that have no idea what world they are living in or how to save money
- We have lots of money that never existed, but that the banks are asking back
- We have an unstable financial system, where the politicians have to cover bankers’s asses assets by, of course, bailing them out with slaves’s money (from taxes or with brand-new money that will eventually decrease the value of money already in the market), thus getting slaves into more debt
- We have a bunch of people that are forgetting about racism when it comes to believe in the hope that Obama some kind of Messiah is going to save them from whatever is happening… since mass-media is “helping” them a lot not to understand the real reasons
- We have the baby boomers generation that has to turn the clock back with two decades or even more
- We have a political class that instead of bursting the bubble is trying to blow it even further… as they are controlled by bankers… and if they will “succeed”, the crash will be even harder after the next 2-3 years… a political class that’s not acting rational for the majority’s interest
- We have a world’s major consumer (USA) that spent way more they afford to, and some other major savers that credited them.

What we will have from now on:
- from USA’s point of view, the deflation will continue for some years, FED will continue to print money in order to bail out some more bad businesses, to buy their own treasury bonds, to replace the electronic money with paper money and for the slaves to have some money to pay the mortgages with. However, for a while the credit can’t recover to the level it used to be at, thus deflation if the Chinese and other countries that gathered US bonds will not start to sell them back to US. Otherwise, when the credit will regain from the losses, inflation will strike. If it would be to consider the debt/GDP ration, I see the US dollar loosing half of its value in a decade.
- from Europe’s point of view, it’s a little bit easier. They can get over this story faster than USA, just that maybe will not be together after that, since the richest countries will help themselves out of this and let the poorest ones from Europe to practically die (anyway their mission in EU is over, since they were accepted because of their cheap work force and because they had a baby boom (due to communism) right when the western Europe didn’t, 1965-1980)
- from Asia’s point of view I see just one unknown variable: will China, as the king of the region (by the way, Japan will lose much because they have no natural resources and the products they are making are of high costs), be able to stop a very possible revolution and not to chip away in pieces? It will be very interesting to see how much the USA’s government will be able to initiate and sustain that revolution and to “spread democracy” around there when they will have many frustrated slaves to deal with at home. Why would USA try to fuel a revolution in China? Because this is their biggest chance to remain the world leader for some more decades… and unlike one century ago, now is more harder to start and maintain a world war, as it may end in less than 48 hours, with mass destruction and no real gain for further manufacturing… so the revolution is the way to go for them.

Rorschach: None of you understand. I’m not locked up in here with you. You’re locked up in here with me.

J.Paul Getty once said:

If you owe the bank $100 that’s your problem. If you owe the bank $100 million, that’s the bank’s problem.

What will have to happen later on*:
- people will have to open their minds and not look around when deciding how the society should be organized, but to use their brain in order to understand what democracy really means and how liberty can be achieved
- money will have to represent the cumulative value of the existing goods or the gold standard will have to be reinstalled
- states will have to restructure themselves (e.g. banks should not exist as “private” entities, their job should be done by the real representatives of people, formed as non profit organizations)
- humans will have to think on: if we are going to meet an alien civilization today, how would the alien’s society look like on their “earth”? Are they fighting each other for resources, are they racists, or are they greedy as hell? Sure not, otherwise how were they capable to find us and let us know they exist? We have to adapt and to form a type of ‘alien society’ if we don’t want to face extinction sooner than later. Good luck with that! In my opinion, this can be achieved only if the technology is strong enough to help when needed.

*a time frame for the last paragraph would be 250-350 years from now, after most of the resources will be depleted and the population size will decrease accordingly.

Dr. Manhattan: I can change almost anything, but I can’t change human nature.

Don’t get me wrong, to be greedy is good, since this is ensuring progress, but not when is doubled by stupidity. Who’s stupid? Of course… the ones that allowed the plan to take shape (maybe more details about them later on, in another post)… or maybe just me.

This is what I think about the crisis and what I believe will happen, which of course is not true… since a nuclear world war can start anytime soon, so please don’t take anything from the above as advices.

The plan was not just an American one, even if it was invented in US, it was quickly implemented in other countries. For example, in Romania the monetary loans started to flow only in the last 5 years, and they managed to get in more debt in those years than the US citizens did in 20 years.

The plan is more complex than this, and it involves lots of other small plans/bubbles, but I think that what’s above is the big picture for somebody that didn’t have the time/resources to do a research about it.

Related material:
- To better understand how they are making money out of fin air, you can watch this movie: Money as debt
- Maybe now is late to read “Crash Proof: How to Profit From the Coming Economic Collapse” by Peter D. Schiff (one of the few smart guys that “invested” in this crisis before it happened, although not in the right way so far) if you are already familiar with how stock markets and economy works, but you can watch him on his youtube channel
- Brooksley Born - she saw it coming, fought at the highest level to prevent it and lost. For more details have a look at The Warning.

This text was posted on bogdancoman dot com, on 16th of March 2009.

PS: one very good article on how the big Wall Street financial institutions are getting money from American taxpayers and are corrupting the US government: The Big Takeover