DEBT AND DEFICITS

 

DEBT AND DEFICITS: INFLATING INFLATION

Nations have established themselves along economic and financial models that are not self-sustaining or sustainable.

Inflation: an increase in the volume of money and credit relative to available goods resulting in a substantial and continuing rise in the general price level.

The world of finance is literally waiting with baited breath, hoping and praying, that the financial mess created by continual and excessive government spending and borrowing, won’t come crashing down around our ears.  Collectively, we, the government owe all that money.  You see, government is not some abstract entity.  We elect all the political actors heading up our various levels of government and it is our vote that puts them there and in our name all those dubious debts and deficits are racked up.  The amounts we owe, hundreds of billions and trillions, is so staggering that it will never be paid back and it is apparent that not a single government has any inclination to pare down that debt or to stop borrowing.  Deficit financing is now a standard government term used to justify increased borrowing and debts. 

Losing control.

One of the worst side effects of inflation is the sad fact that as citizens we lose any form of control over spending and it leaves us increasingly beholden to deep pockets.  All that extra cash, increasingly printed rather than borrowed, ends up somewhere and it is not in your wallet.  Flooding the markets with worthless paper money ensures that everything you own and purchase is steadily losing value and relevance.

Economists know that wealth needs to be kept in circulation to keep economies going, healthy and vibrant.  Put the masses in the poor house and it is a recipe for disaster.  There is even a song that puts it quite nicely: Money makes the world go round!

When you create a lopsided division of wealth it literally creates division.  Burden the masses with inflation and bad debts resulting in a real loss of disposable income and purchasing power and you end up creating a nationwide dependency on government assistance and handouts and when you attempt to do this with an empty treasury chest it spells trouble with a capital T.

Top dog syndrome.

Those of you familiar with my work know that all living species are driven by two primordial forces: energy and momentum.  The urge to survive and to be dominant is stronger than any kind of intellectual reasoning to moderate our numbers and impact. (And that includes inflation)  It is a progressive, unstoppable force that undermines any effort to collectively work towards societies that are sustainable in the long term.

Rushing along decline.

Putting the bulk of wealth into the hands of a few greedy individuals is a recipe for disaster, yet it is greed, that once unleashed, is nearly as unstoppable as momentum.  Creating financial models that reward a few and puts the masses in perpetual debt is not the smartest way to move forward.  When people can no longer afford homes, pay rent and lack the money for essentials, you unleash dissention and rebellion.  When people are left with a feeling that they have nothing left to lose, all pretense of reason and reasoning will be lost.

History is proof positive that once the notion of societal failure comes knocking on collective doors that it will bring out the worst we can bring to bear on ourselves.

There are better alternatives.

A nation that distributes its wealth in an equitable and fair manner will be less prone to disruption and internal strife than a nation that exploits its people and where too many are left behind in poverty. 

In my novel—Behaving Badly—written almost 2 decades ago, long before writing—Energy & Origin—I already contemplated how energy and the need for energy determines how well or how poorly a species will fare.  My entire writing life has been a study of humanity.  How we have evolved and where we are headed as a species.  Without energy there is no opportunity or growth.  Without opportunity a species won’t prosper or survive and growth is needed for a species to reach maturity and the ability to procreate.  A seed will not germinate without soil, sunlight and water.  In order for life to flourish all the right conditions have to be met.

Energy, opportunity, growth; the circle of life.

My understanding in the latter part of my life of the impact of energy and momentum as described in Energy & Origin was literally the missing piece in the puzzle.  Life and existence pared down to the absolute basics.  If you don’t grasp and appreciate what makes life tick and why the trajectory is a foregone conclusion, nothing we engage in will make sense.

Risk reduction.

Break that circle of energy, growth and opportunity and you’re left with the chaos and uncertainty it leaves behind.  Reducing our impact, reducing our numbers and concentrating on sustainable practices and activities will go a long way in mitigating our worst habits and scenarios.

We are a fragile species prone to lashing out with violence and unreasonable actions and activities when the primary concern of any nation or tribe should be with establishing stability through a fairer division of wealth and opportunities.  That we’re engaged in the opposite should be a no-brainer.  Our foot is firmly placed on the accelerator and the brake pedal appears to be missing.

When nations start to lash out ( And the current bad actors capturing headlines are Russia, the USA and Israel) the origin for all the turmoil created has an internal origin.  The fires are started from within.  Whether the origin is financial or political, based on fear, division or anxiety, no outside interference has lit a fuse.  Once nations run amok and pick fights, fact and reason are pushed to the side and ignored.  Any excuse to embroil others in the conflicts will do.

That so-called superior intelligence of ours, combined with a greater sense of awareness, has been responsible for creating some bizarre realities as in constructing economic models that have been instrumental in such a lopsided division of wealth that collectively we’re jumping through hoops to keep it together and preventing it from falling apart.

Economists around the world are well aware that we’re playing with fire.  Scientists involved in the study of humanity’s impact on Earth are holding their collective breaths.  We’re acting like politicians with a childlike mentality, playing to all sides with useless debates and anxiety filled finger pointing and hoping that in our lifetime we won’t crash and hit the wall.

This has to hit home!

To give you an idea how huge the US debt is I will illustrate this with a simple example anyone can understand.  The US has roughly 100 million homes.  If each home were valued at four hundred thousand dollars, that is the equivalent of the current  40 trillion dollar  FEDERAL debt.  This doesn’t include personal debt, mortgages, municipal, county and state debts!!!!!  America is broke.  Globally we’re all drowning in debt that will never be paid off or pared down.  And we keep borrowing and printing useless cash.  Welcome to the Mad Hatter’s tea party.

If debt and deficit financing can be compared to a balloon, we’re engaged in a vicious circle of inflating inflation by blowing more and more hot air into that balloon and we know that the darn thing will eventually explode with a huge bang.

As an aside.  I just read an article in a major publication that hinted that even halving the world’s human population would provide a huge reprieve.  One thing I do know, none of the authors have read my novel—Energy & Origin.  Depopulation is a political hot potato that not single political party dares to promote as a solution.  Yet keeping this mass of humanity alive, fed and sheltered, is killing us.

To promote my work and in the interest of humanity I will make Behaving Badly available for free as an e-book and all you have to do is send me an email at wbes6646@gmail.com

Feel free to comment or share.

On the other hand, purchasing Energy & Origin from KDP amazon.ca is welcomed as well!!!