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…We live with a DEBT economic model which is dysfunctional…[It] has produced mountains
of unpayable DEBT and continuing national deficits with no options for any real repayment…[It is] a one-way street with a cul-de-sac at the end – and we have reached the end of this one-way street as of 2018.
The original article has been edited here for length (…) and clarity ([ ]) by munKNEE.com – A Site For Sore Eyes & Inquisitive Minds – to provide a fast & easy read.
If you look at our situation realistically, the math which makes up our economy does not work going forward. Math is the core of this current DEBT model. This means that our central planners (who administer this math system) must continue to temporarily prop-up these numbers (artificially) so as to keep the DEBT pyramid from totally collapsing. Unfortunately, this DEBT pyramid has also reached a threshold level where servicing this accumulated DEBT is becoming impossible. This reduces real economic growth and prosperity for our future generations continually. Our children can not service this growing DEBT and still prosper as economic agents on this planet.
All this means that the current DEBT MODEL of economics (often called Keynesianism) is essentially over and a NEW MODEL is now needed for our planet. You can witness our impossible situation at this website: http://www.usdebtclock.org. Our total DEBT (including derivatives) is now nearing $640 trillion and this is merely our American real-time DEBT. If we add unfunded obligations to this total our DEBT is over $752 trillion. Globally, the numbers are multiples of this number…None of this DEBT will get paid back as there is no way to grow our economy to the degree necessary so that the DEBT can be repaid. It’s impossible!
All this means that our current DEBT model is dead in the water and it must be wiped clean at some point (sooner is better than later). Wiping the numbers clean means declaring national bankruptcy and admitting what is obvious. WE ARE BANKRUPT! We are now living on BORROWED time…and this situation is unsustainable…
The end of our DEBT model is here. We now need to start thinking about a NEW ECONOMIC MODEL for our future. What might this NEW MODEL look like as to the basics? My sense is that our children will determine what must happen going forward. Our millennials and those younger will way-in on our situation and then select this NEW MODEL for our country and eventually the entire planet. Now is the time to start thinking about the core principles for this NEW MODEL.
Some obvious issues for a NEW MODEL would be the following:
- DEBT must not resurface in any new model. Any new model must be debt free and dynamic. A one-way street model (as our current Keynesian DEBT model is) is not going to work going forward…
- Money must be gradually and totally eliminated as an economic tool... Money is merely a ‘tool’ of economics (a past idea) which has no merit in a NEW MODEL where real-time activity can be accomplished via volunteers, AI, and robots.
- Transparency and decentralization must be core principles of this NEW MODEL. Central planning via a group of elites operating behind closed doors must be eliminated (totally)…
- Any NEW MODEL will need to be global in scale. The planet is now fully interconnected and wired for communication to all points and places. Resources must be shared…
- Robots and artificial intelligence can play a huge role in this NEW MODEL. Most production (goods) can be done via robotic means. Artificial intelligence can monitor and provide real-time data/information for each decentralized venue. Labor can result from spontaneous communication via smart phone activity. Enjoying the work environment will be important as all economic activity will be via volunteers.
- Subjectivity will be the key philosophical principle of this NEW MODEL... The individual will replace the current…state system of collectivism. Self government (by each individual) will be the core principle which allows the system to flourish. The STATE will be meaningless under this NEW MODEL.
Summary
The above are a few basics which I think our younger generation will desire for their NEW ECONOMIC MODEL.
- Now is the time to think about this NEW MODEL as the current DEBT model (often called Keynesianism) is dysfunctional and obsolete.
- Anyone with a smidgen of understanding and wisdom can discern that the math under our current DEBT model is illogical and impossible to reconcile.
A NEW MODEL is needed and the above is merely an outline of what I think will work after the coming DEBT model collapses. Think for yourself and derive your own wisdom on these issues. Enjoy! I am: https://kingdomecon.wordpress.com.
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As tempting as it is to think of all debt being wiped out, that would benefit those who have large amounts of debt the most. Where would that leave those who have savings but no debt? Or those who have their homes paid for vs those who owe almost as much as the home is worth?
Getting it down to government debt, where would that leave those who are holding government debt like bonds, T-bills and on and on. Would declaring no more debt leave us holding an empty bag?
And what debt, if any, would be allowed going forward? Are you talking about barter only?
And, if everybody (individuals or companies) had to wait until they had sufficient funds to expand or improve their lives, wouldn’t that stymie spending to the point that a society would no longer be a consumer society? Would that be bad?
If no debt were allowed, and that slowed consuming to a standstill, it would also slow production to a standstill. There would be far less need for products if people could only buy them out of their month to month income.
I’m not saying this would all be bad. I’m simply saying that it would be drastically different and would require some major changes in the thinking of everyone.
Could we Americans adjust to not living in an instant-gratification society?
All this sounds like “Jubilee.”
I’m not sure this would be any more workable than what we have. And that raises the question, “Is any global economic model workable?”
The points we’re given here –and the elaboration–is too sketchy for me to determine practicality…but I want to hold on to these thoughts and ponder them. At least someone is trying to come up with something more durable and sustainable than central bank manipulation of market and money fundamentals.
I don’t see how this constitutes an new economic model. Without either debt or money I don’t think you can actually have an economy. You need to have some mechanism to represent the value that you can then exchange for goods or services, otherwise its just a barter system. I suppose that could be an economy of sorts, except for the fact that this model defines a scenario where; “Self government (by each individual) will be the core principle which allows the system to flourish. The STATE will be meaningless under this NEW MODEL.”, means this is a system of anarchy. I don’t think a civilization can be sustained under a system relying on barter and anarchy, AI robots notwithstanding.
Keynesian economics is clearly bogus despite many economists relying on it, but the concept of debt isn’t itself the problem. The problem is the state having control over how much debt can be created.