By David Verveer
Blessed are those scientists who used their genius in order ensure humanity living a healthier life, who dealt with killer diseases such as aids, cancer, strokes, and further back: plagues, cholera, pests and all those terrible mass killers, that practically disappeared from this world which endangered once our life. The result of their efforts can be seen in an increasing duration of our lifespan. Together with the improvement in living conditions, better education, care for our environment, and many other measures taken worldwide, our living conditions are improving daily.
But then something peculiar happens, suddenly the World economy collapses totally, the rich, the speculators and the people who played around with our savings and investments, decided to enter the crisis mode, with result that suddenly the economy remained without a bottom, and again we found out that this human invention, we called "global economy" is something theoretical, something that does not exist, as this was based on mutual trust and pure bluff, gone are the days when money represented and covered payment for work performed.
The baker of bread pays his suppliers for the raw materials needed to bake the bread, and sold it for a selling price, sufficiently high to allow him in making a living, but not too high, ore else the potential client could not buy his bread.
The baker was bought out by the industrialist, who, with increased efficiency produced a mass product, not as tasty as the bread produced manually in the past, but people need bread, in order to live. Of course, his economical risks as mass producer are much higher, and according our money system, he was forced to increase the price per loaf. But our mass producers have no tools to sell their products directly to the customers, for that he needed the super markets and transporters. Of course the client pays for every one handling (theoretically) the bread. The baking factory becomes slowly but surely, old fashioned, and his competitor produces more and cheaper bread, thus our factory owner goes to the bank, and takes a loan, based on a business plan he presented, prepared by a professional consultants, who promises the bakery owner that if this new machinery is bought, and new real estate is acquired, the bakery will be able to increase his production and in seven years, the money invested,will be returned. The bank provides him a loan, but as the bank employees have to live as well, the monthly pay back contains also the fees for the bank including the risk insurance to the investors of the bank.
I could go on like this for hours, and eventually you the customer pays for it, when you buy your loaf of bread.
This system worked perfectly for hundreds of years, and providing a living for everyone who provided somehow services, but than the bankers started to play around, they started marketing these loans, speculating on successful investments, which are going to make the investors rich in a very short period of time. And if they were good sellers, these shares traded became extremely attractive, and a good investment for the speculators. Soon we got into a situation that all those shares were valued much higher than their actual or real value, based on the loan or investment they covered.
This is a perfect system too get rich, provided that nobody one moment stops and looks at the bundle of shares in his position, and asks himself, is it really worth the money invested, could I get back the full payment for those high valuated shares I bought. If only one hesitate, only one sells his assets, nothing bad happens, but if people start rumors that the bank who gave the loan and issued the shares, has financial problems, the entire neighborhood gets in a panic, runs to the bank, and request the value for their investments, and if the national bank does not save the bank, it collapses, and anybody invested in the bank looses his lifetime savings.
I know, I simplified the world money crisis, as many other factors play a factor in the make believe market, in which we pay with money. But what is money? Money is a promise from the issuer (the bank with credit cards or national treasury with bank notes) that he will pay the owner, the written value in gold or silver, and originally the national treasurer kept for this tons of gold in storage, but when the use of money and the exchange rate between the countries started to be very big, the gold reserve promise became irrelevant, and the exchange value between currencies became a part of the international game of global economy.
Now we reach the current world economic crisis, in which nobody trust anymore the value of money or / and shares, as there is nothing back there to show for, there is no gold reserve, bank notes are valueless (see Zimbabwe) when the exchange rate for example of one dollar runs in the millions of Zimbabian dollars. This time, everybody suffers; the poor are deprived of their job and do not have money to pay for their food, the rich (and in between) don't earn as the economic activities comes to a halt.
But now, let's look back, what happened, which virus caused this disaster? The answer is "human greed". The economics went astray, when the commercial value extended the real value, when the investor bought shares for "high tech", without any tools to check if this "high tech" product really has a market. The speculators worldwide caused this disaster, which will in the near future still demand many more sacrifices, until we go back to the same insane and un-real world economy.
Of course, there is no solution for this human made disease, greed, which just as war is incurable and planted in the human, in order to prevent over-population.
No comments:
Post a Comment