Individuals have nothing and are nothing outside of their ideas and skills.
In order to survive and eventually improve our circumstances we can only exchange our skills and ideas against those of others. Nobody can hope to improve their lot without interacting with others.
Money facilitates the exchange. Money is a neutral vehicle of exchange.
In the absence of money, the exchange of skills and ideas is cumbersome and time consuming. By allowing us to place a value on our skills and ideas, money facilitates the division of labour thus literally allowing us to buy time to do more of what we feel is more rewarding.
Therefore, money is an intimate and integral part of the fabric of society.
Money is an abstract concept. It does not matter what is used as money. What does matter is that two individuals must agree that something is a viable medium of exchange. Since we are trading our skills and our ideas, we have the natural right to choose what vehicle of exchange we wish to make use of.
Money is our natural right because our ideas and skills are our natural right. If our skills and ideas make us what we are, then by extension, the medium of exchange we deem suitable to represent our efforts is just as much a natural extension of what we are.
Now imagine this.
Imagine two individuals that wish to trade skills and ideas with each other.
Imagine further a third individual who is a purveyor of money.
Imagine finally, that the two individuals that have skills and ideas are obligated by law to make use of the money supplied by the purveyor.
In this simplified context, it is clear that the two individuals that wish to trade with each other are at an arithmetical disadvantage to the purveyor of money.
The purveyor of money creates money to continuously buy from one individual and sell to the other. Simply by creating more money as needed, in the long run the purveyor of money will own the ideas and skills of both individuals.
When organized society surrenders to a central bank the right to choose what constitutes money, the central bank will create money as needed and will end up owning the entirety of the productive capital of society – i.e. the central bank owns you – that is “owns” you with an “n” as opposed to “owes” you.
Granted the time line can be rather long. But the arithmetic underpinning the system is solid.
If society relinquishes the right to choose what money should be, by default a third party like a central bank that has no skin in the productivity of society will invariably opt for a debt based monetary system. The question is not why would it. The question is: why wouldn’t it.
When the central bank of the hegemon convinces other countries to accept its variety of debt based money as a reserve currency, then all countries that accept will in time too be completely bought out economically and politically.
These are arithmetical realities.
Central bank apologists point to the confusion and the scams that were perpetrated prior to the establishment of a central monetary authority.
Far from me to dispute the fact other than to say that we have traded fraud perpetrated by individuals upon individuals for institutionalized and organized fraud perpetrated by a selected elite upon the entirety of society.
The logic inherent in debt based money must necessarily and arithmetically result in the constant expansion of government. This is because it is impossible to institute debt based money by limiting its creation. Debt based money must necessarily be created liberally and excessively. If that were not the case, then a value based monetary system or a system based on a fixed amount of currency would be employed instead, thereby obviating the need for a central bank. So debt based money must necessarily be spent in order to fulfill its role. Spending is induced through the use of leverage brought about by the creation and the expansion of the credit markets and is driven by liberal spending at government level as well as through para-governmental entities such as the United Nations, the IMF, the World Bank and sundry NGOs.
By the time debt based money comes full circle as it inevitably must, individuals and governments are mired in debt, wages are low, government is the principal employer and/or provider of benefits, political entities run policy (unions), industrial capacity is excessive, pricing power is low, the natural environment is devastated and sovereigns are saturated with each other’s sovereign debt leading necessarily to self monetization of their own debt.
Self monetization of sovereign debt in a context of Floating Exchange Rates calculated on one particular reserve currency, means that the entire construct of sovereign currencies, predicated on sovereigns buying each other’s sovereign debt, has failed. When the mathematical limit of this pyramid scheme is reached, sovereigns must necessarily and inevitably make a last stand by buying their own sovereign debt hence the various QE, ESM, EFSM, OMT and more to come to a sovereign near you.
All the while the central bank issuer of the reserve currency laughs all the way home… i.e. all the way to the bank.