neljapäev, 21. november 2013

Why economy collapses sometimes

I wanted to post in English for a change, so don't be a Grammar Nazi. Hold in mind that I'm writing in a language that is problematic even to people who speak it as their mother tongue. I want to post this in English 'cause this kind of ranting and anger towards the world feels more home in these words somehow... So I begin.



To make money means to literally MAKE money out of nothing. It's built on lies.
The first lie - marketing.
Marketing is a way to make the products qualities seem better than they really are, so they could ask more currency for selling that object. So if you want to get money, you have to make unfair trades. But if the trades are unfair, then somebody is being robbed of their valuables. Marketing allows to hypnotize the victim, through lying, to be unaware that he/she is being mugged.
The second lie - discounts.
If you go to the store, you can see loads of discounts. Some are there, because the salesman didn't get rid of the items, 'cause they are not worth the money he/she asks for them. The cause may be, that the lie was too big or the salesman got robbed himself. Some discounts are for the quantity of the product. If the market buys a truckload of beef, they have to sell it fast so it wouldn't spoil. But the salesman wants to make a profit, and when he/she does, he/she wants a bigger one. Every market owner wants to expand, to get even more money. Discounts help, cause they create an illusion that products are being sold below their worth, but instead they started off selling them for about twice or triple the worth, sometimes more.
The third lie - savings rates.
The banks lie to people, that if they storage their currency with them, it'll grow larger. But it actually drops because of inflation. The balloon doesn't get bigger, it just has more air blown in it. And that's what this all is - blowing air.
The fourth lie - loans.
If a bank has valuables, it can lend them out. So lets say a bank has 3 valuables. Then comes a man who wants to loan all 3 valuables for a while and promises to bring back 4 valuables. But the valuables are still owned by the bank, the man just bought the privilege to use them. The man then has to find a way to get an extra valuable from somewhere, if he does not, he has to pay up some other way, usually by material wealth. The man thought that he owned the currency he loaned, but actually he gave away part of his wealth for a temporary privilege of holding a large sum of currency at once.
The fifth lie - second loan.
This is the lie, that actually is the main basis for the last lie - creating money. This lie allows the other lies to function for long periods of time without crashing them on each other and therefore ruining the system. When the man left with the 3 valuables, the bank didn't lose the ownership of those valuables, so they may be handed out again. So if a second man comes, he can also loan the same 3 valuables the bank owns. And that's why banks need you to hold your money on their account. They can use your money to loan out to other people. They said, that what they loaned out to the second man was the banks money, but it could not be, because that currency was already in the possession of the first man. What they did was they took the money you deposited in their account and handed it to the second man. So when the loans are paid back the bank has gained interest. And interest is stolen wealth. It works if we don't pull out our savings all at once. The lie is a bold one, but somehow it still works.
The sixth lie - central banks.
If the bank is big enough it creates the illusion that it has power, because all of the goods it has stolen. And when power is being crated, other things can be crated, including money. And money is being made all the time and very rapidly. It needs to be rapid because otherwise people would notice too soon, that something is wrong. The bank prints out new paper, but does not tell this to the world. Then they proceed and use it to buy real wealth. That money they crated was out of thin air, they just made it up, because they can. The trick is to make the rest of the world think, that there is less currency flying around that there really is. So the worth of the paper is actually lower then people think it is. And when we are dealing with enormous numbers it pays up very well for the one who tells the lie.
All these small lies are the foundation for the last one. And we lie because we are greedy. And that's why the economy collapses. Because you can't build a sturdy house using some imaginary blocks.



These are the lies that other people tell to us and we tell other people. The lie we tell ourselves, is that we believe that the piece of paper has any worth to begin with.

So let's not make money.
Hjops!

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