Debt Is Slavery

🤗 June 2024 - Post has been updated with more juice 🍊

Overview

• 🏷️ We cover how the system is designed to make you and keep you a slave

• 🏷️ How supply and demand affect prices

• 🏷️ How money is created from thin air

• 🏷️ The money multiplier effect of the banking system

• 🏷️ How inflation robs you of purchasing power

• 🏷️ How amortization works towards enslaving you

• 🏷️ Removal of fractional reserve requirements

• 🏷️ The Ponzi Scheme of life

Note: I use government and central banks interchangeably in this post because - they are in bed together and can be rolled up into the same entity.

The financial system that we live in is a Slavery system, a doom loop of perpetual bondage

Lets look at the systems in place that work to keep you as a slave and unable to ever escape the system. I haven’t seen a comprehensive list before so I’ve worked to compile one.

Premise - Money Supply

Lets just first revisit a core principle of economics - supply and demand. As demand increases and supply remains the same, the price increases (where the lines join). When more money is in circulation, people have more to spend, therefore demand will increase, causing prices to increase.

Money Creation on Loans

Growing up, I remember reading tales of chemists working to create Gold from Lead. Something valuable from nothing. This idea of something from nothing seems incomprehensible as it is not a thing that exists in nature.

In Physics, the first law of Thermodynamics is:

Energy cannot be created or destroyed in an isolated system. It can only be transformed from one form to another or transferred from one part of the system to another.

This law is deliberately broken in our financial system. This is a literal violation of nature. The banking system has the ability to create something from nothing.

Get this - When a person or company wants to borrow $100,000, that money is created out of thin air. The lending institution adds a few digits to their software, and POOF the money appears in the bank account. The bank creates a liability on their balance sheet and an accompanying asset (as they use double entry accounting).

The banks get to create assets out of nothing. While the other party has to use life force, time, labor to settle their part.

If you are interested in this topic see this video covering systems that mirror nature and systems that do not.

Deposits

Fractional reserve banking of 10% means that banks can lend out 90% of the deposited money. On $1000 that would mean that $900 could be loaned out. Which might be put into a different bank of which can in turn loan out $810 and so on. So this magical money that gets created out of thin air, will then get multiplied a large number of times, meaning more money in circulation.

Inflation

Remember how we said more and more currency supply drives up prices. Which means the things you need in life get more and more expensive.

If your salary hadn’t gone up for 10 years and inflation was at 10% you purchasing power would be roughly 50% of what it was. So you could only buy half of the amount of stuff you once could buy.

The Government distort Inflation measures (CPI) as much as possible to hide the true reality. If you look yourself at the cost of everything going up, you can see its clearly not the reported 3%.

Quantative Easing

Another tool that central banks use has been Quantative Easing which is effectively printing money then buying assets such as Government bonds, municipal bonds, mortgage backed securities etc…

This excess of money acts again to inflate the money supply making your dollars worth less.

Amortization

Well - that sounds cheery. Perhaps the clue is in the name.

With the comfort that everyone has them, the acceptance for long running loans via Mortgages is commonplace. People willingly take on 25, 30, 35 year mortgages which in my mind are an opted in form of enslavement.

If you took out a mortgage for $400,000 over a 30 year period (to keep the payments being affordable) given a 5% interest rate you are paying $373,000 in interest. 93% the cost of the actual house is being paid interest.

Your $400,000 has turned into a $773,000 total repayment. Compare the lifeforce that you have to exert to repay that money versus the 0 seconds of effort the bank took to add the 00’s in their software.

Spending Tax

There is always a theft when you go to spend money. There are the obvious ones such as VAT in England which was 20% when I left the country! But there are also “merchant fees” which are typically 1-5% paid by the seller to the credit card company. And with all costs they are passed onto the consumer - i.e. you.

After Tax

The $773,000 dollars that you have to pay back to the bank are AFTER TAX. You need to make way north of $773,000 dollars to have enough after tax dollars. Specifically $1,030,666 of pre-tax dollars.

However you have to Eat, Socialize and live a bit of life. Ah yes, remember now that everything costs 3 times as much with Inflation. Keep in mind, going forward, I expect Taxation to increase.

Progressive taxation is a tool designed to stop you from taking large amounts of money as income as the more you take the more your tax burden becomes. This disincentives people from taking larger salaries preferring to keep their money in the governments hands via a tax deferred account of some sort.

Governments deliberately doing this to you plus financial professionals such as accountants and financial advisors recommending staying in low tax brackets, utilizing tax deferred accounts are forces working to keep you in debt longer.

Dropping of Fractional Reserve

Guess what! The United States dropped the fractional reserve requirements of 10% in 2020 so the expansion of money will increase to some crazy parabolic number. Adding massively to monetary inflation and the destruction of your wealth.

A wee little snippet of Chat GPT’s response zero reserve requirement. Infinite money supply baby.

Ponzi Scheme

Outside of all of these schemes of debasing your wealth through money creation, the Government takes on Debt too! The debt burden falls upon you, the tax payers. The United States is taking on 1 Trillion dollars of debt every 3 months now!

All the children who haven’t been born yet will enter the world with a weight on their shoulders of unimaginable debt. This is why they want larger populations to support the increasing debt load. They are bringing in illegals as many foreigners as possible.

The Future - Tax, Austerity, Inflation

As countries become more and more impoverished, Austerity, Capital Controls, cut backs, raising of retirement age will occur. Taxes will increase for more punishment on top of the crippling living costs.

Unrestricted money creation erodes your wealth and purchasing power at a very quick rate and that rate is increasing. High inflation has occurred many times before - some recent examples Venezuela, Argentina, Lebanon, Zimbabwe, Iran.

Governments deflect blame onto different groups of the population. The business owners, the wealthy, the companies. Deflection is the first chapter in the blame game playbook.

My thoughts are that inflation is going to increase for the United States and you will feel actively poorer. I’ve seen mention that a debt to GDP ratio of over 125% historically has crippled/collapsed countries.

Either GDP needs to increase via AI or cutbacks need to happen.

Final Thoughts

It is almost like they wanted us on a perpetual hamster wheel, unable to get ahead and prosper. The erosion of individual wealth is mind boggling. It’s unfathomable to imagine generational wealth or prosperity that can be passed onto one’s children.

The Matrix is very real and meticulously planned. Shrouded in layer upon layer, obfuscating its presence.