Simone Wapler – La Chronique Agora (France) –
The most worrisome thing in the world’s debt is not the amounts, but that the figures are totally beyond the human dimension.
I recently read in the presentation of a gold mine these three figures:
US debt: $ 20 trillion Global debt: $ 233 trillion Financial derivatives: $ 545 trillion
Most people are now accustomed to these trillions. So far everything is fine. Why would not it continue … Why not millions of billions?
These amounts are denominated in currency and more specifically in dollars.
By letting ourselves be polluted by the speeches of politicians, central bankers and by the monetary simagrées, we lose sight of the essential.
Economics is above all about exchanging something for something else. In the framework of a freely concluded agreement, each one considers to be a winner in the exchange, otherwise this exchange would not be done.
Money, money does not “make” the economy. It’s simply a transitional stage; the only driving force of the economy, the only source of prosperity, is the exchange that then turns out to be fruitful for the buyer and the seller. But the intermediary, the currency, can sometimes cloud the perceptions and that is exactly what the central bankers do.
The commodity currency is the least polluting currency because when a transaction is formed, something is exchanged for something else that already exists: a commodity that has acquired a currency status through use. Gold and silver were finally imposed before being definitively expelled from all monetary systems in 1971.
“The real breakthrough in monetary history came when people learned to trust a currency that lacked inherent value but was easier to store and move.
If it establishes universal trust among foreigners, this trust is invested not in men, communities or sacred values, but in the currency itself and the impersonal systems that support it. “
Yuval Noah Harari, Sapiens – A Brief History of Humanity
<img src=”https://cdn.publications-agora.com/elements/lca/newsletter/images/contenu/180301-lca-croyance-monnaie.jpg” alt=”La seule différence entre ces deux billets Est votre croyance selon laquelle l’un a plus de valeur que l’autre” width=”550″ height=”351″ />
With the credit currency we know, the buyer has no consideration to offer the seller at the time of the exchange. But the seller accepts the exchange because he is confident that one day or another, the counterpart will materialize.
Marcel Dugenou buys a car on credit. He does not have the money, he just thinks he can get it. The accounts of the manufacturer, the dealer are credited, the account of Marcel Dugenou will be regularly debited and the credit agency receives his commission.
We live in a time when high priests, scribes and other debt registrars have been replaced by commercial bankers and central bankers who are the guarantors of the former. The current economy rests mainly on the exchange of something against a promise (Marcel Dugenou will not be unemployed, disabled, has a life insurance).
Alan Greenspan, Ben Bernanke, Janet Yellen, Jerome Powell, Jean-Claude Trichet, Mario Draghi … are only intermediaries, “trusted sellers” and vague promises that one day, what has already been sold and consumed will be balanced by something else having value.
Where did their vague promises take us?
$ 1 million = $ 1 per second for 12 days $ 1 billion = $ 1 per second for 32 years $ 1 trillion = $ 1 per second for 32,000 years
Ridiculous? Unsustainable ? Inhuman? You choose the adjective that suits you.
Forget the derivatives. Let’s stick to the world debt. Consider that out of seven billion people on Earth, 3.5 billion are capable of earning a living. They each support $ 32,285 in debt. But no one really told them. They think it’s not their business. They try to make a living and they spend what they earn. If they want more than they earn, they go into debt. Today wealth is measured by “debt capacity”.
If you believe that these debts will be paid one day and that the currency of the central bankers deserves your trust, I fear that your naivety will cost you dearly.