BGE / Unconditional Income / Bedingungsloses Grundeinkommen

David Graeber is an Intelligent human being – an activist – active in occupy wallstreet and so on.

His book – debt the first 5000 years – is a scientific very detailed 534 pages book – but what he misses – what is wrong with debt?

let me tell you what is wrong – with the interest on debt monetary system:

repaying debt is not so easy, not only because of the interest-on-interest effect but also – the money to pay the interest – IS NEVER CREATED in the first place – the game is rigged. (see another great book: Bernard Lietaer “rethinking money”)

Here comes the (simplified but still true) example:

imagine a world where there is only one bank and two shoe companies:

  • company A shoes
  • company B shoes

Bank X is given a loan from the central bank of $100.000 in cash (the central bank is the only bank allowed to issue cash).

The $100.000 Bank X keeps as reserves (10% in reality this would be only 1%).

This allows Bank X to lend out 100% of the $100.000 meaning $1.000.000 or one million in “book money” (money that only exists in the books or in computers).

So Bank X can gives company A and company B a loan of $450.000 to start their business and wants every year a modest rate of 3% interest.

The problem: the 3% interest ($13.500 in the first year) ARE NEVER GENERATED and thus one of the loans HAS to fail.

So after the first year – already $27.000 of interest would need to be paid to Bank X – but because this money was never created in the first place it can not be paid unless…

Company A needs to “extract” money/steal from company B in order to repay their debt or face bankruptcy.

Eventually one of the companies will have to close down – people lose their jobs – and the other company then has a monopoly on shoes – the prices for shoes skyrocket X-D

Because the interest-money is never created, it is not in the game, one of the competitors has to fail so the other competitor can repay the loan.

This is evil.

It is evil because sets people against each other in very very aggressive and evil way and calls it “normal”.

This will create a society of thieves and robbers and this is exactly what we have today.

did you know the “privatization” comes from the the latin word “privare” which literately means to steal? (deprive, rob)

The Goldman Sachs saying: “it is not enough that you win – others have to lose”

is not exactly correctly, more correct would be:

“in order to win – others will have to lose”

because those are the (current rules) of this catastrophic debt based game.

Here is another piece of wisdom: NEVER lend money to family or friends or you will lose both.

instead: if a friend or family member is in need ask them what they need and buy it for them. (help with material not with money directly)

or: give the money as a gift.

never the less Graeber keep up the good work.

Lietaer has unfortunately passed away.

what does a bank produce? – loans -if a bank does not produce loans – it is essentially defect and may as well be closed

is unconditional basic income aka “free money” for the masses good or bad?

what would be much more important than monetary gifts (see unemployed people in eastern Germany even when given “free money” are unsatisfied because they have no work/no meaning/purpose in life.

What would be important to put in requirements and regulations that say banks must lend 90% of their newly digitally self-generated money and FED/ECB cash 0% (which is essential also “free money” (interest rate = the costs of money/currently: no costs))  to entrepreneurs and self-employed people and people with ideas that want to become entrepreneurs

currently it works like this:

a private bank borrows 1bn Cash from FED or ECB
for 0% or almost 0% and instead of phoning up and investing in ads “have an idea? here is your loan” providing the economy and innovative people with cheap money to turn ideas into reality and create jobs – it is – at least in the EU area largely put back into an ECB accounts even when that means paying “parking fees”.

https://www.merkur.de/wirtschaft/ezb-warum-banken-strafzins-zahlen-6709249.html

“but have to pay ample penalty interest due to high liquidity surpluses”

Wirtschaftsminister kritisiert Banken für zögerliche Kreditvergabe

“they (the banks) said,” We don’t give you credit, because we don’t know how long you can’t produce, how long the corona crisis will last.“

money that is not put to work / does not create jobs is a defective monetary system and needs to be fixed or risk major unrest.

a unconditional basic income (UBI) makes sense at this point in time / in this situation that banks fail at bringing “money to the (real) economy” / banks do not want to bring money into working hands thus the state and the customer must do it.

It would be the best economic program ever.

everyone would get 1000USD or 1000€ a month for a limited time – let’s say one year – then check how the economy performed.

and repeat or stop – but at least try.

then, of course, there is the question of sustainability

of course, it would be great to link a UBI directly with requirements for more sustainability such as:

  • electricity providers must be changed if not 100% of energy comes from renewable sources

there are two reasons why UBI might be prevented:

  1. the banks are convinced, that printing money for themselves is “fine” while printing money for “jill and joe” would lead to Inflation (does not make sense to me)
  2. why is the tax system so complicated? because it creates senseless jobs / so it is simply a job creation measures / a lot of administrative jobs could go away if UBI replaces all the complicated social programs and maybe even pension

Hello dear fellow thinkers,

You might have heard – the far-right is also marking progress in Germany and almost became head of state in an Eastern German former GDR state.

The situation is this: if the people of former GDR / East-Germany stands in a queue – this time not for bread but for a handful of poorly paid Jobs with refugees from Africa and Syria, then it is (almost) clear who they will elect (the far right because – obviously US-capitalism has done anything for them but US / CIA fueled wars brought a lot of refugees that now compete in a capitalistic East-Germany without jobs.

This cannot be ignored – the same way a nuclear reactor that is about to blow – can not be ignored.

At the same time, East-Germany (still) hopes that they will not be completely left alone in this chaotic capitalistic mess without orientation by ex-Mother Russia (but those hopes are naive).

https://www.independent.co.uk/news/world/europe/nazi-emergency-dresden-germany-far-right-extremism-a9182691.html
https://www.independent.co.uk/news/world/europe/nazi-emergency-dresden-germany-far-right-extremism-a9182691.html

Kohl and his western allies have done nothing for the East but extraction and exploitation including the destruction of a lot of East-German companies, factories and jobs.

Which the East-Germans “thanked” him by throwing raw eggs during his 1991 visit to Halle. (a East-German city where the decay can be seen until today)

The reunion was a Prestige-project of Chancellor Kohl (yes the fat and corrupt one) – unfortunately  done in a hasty and without concept way. (the head of the trust that destroyed East-German companies was not shot for no reason but this did not change anything… because changing the system takes more than killing a single person)

It would have been better to set up a special economic zone and then slowly align it (same with Hong Kong and North Korea)

30 years later… the landscapes in the East blooms only if jobless East-Germans can afford to paint with state subsidies (they can but not much more, also some problems can not be solved with money alone).

Yes, in the Soviet Union not everything was better, but everyone had a job – a purpose – even if it was mining with old equipment, but the people were proud on their jobs.

Everyone wants to be important part of society – and money-gifts can give no self-worth.

The Lobby-controlled Berlin has – still – no sustainable concept for the East and 30 years later it becomes clear, a 1: 1 copy of the transfer of the concept-west, i.e., exploitational capitalism / the US-model of economics simply does not work for the GDR.

it just doesn’t work.

No wonder that the former GDR people feel systematically left behind, disadvantaged and fooled.

There are legitimate grievances what humans need, that can not be ignored.

Also voters in the US feel that they do not have a voice, this is largely because of lobby corrupted Washington.

That was the idea behind voting Trump: this guy is so rich – he does not need to exploit the poor… well think again how he got rich?

By exploiting the poor! (by constantly raising real estate rents)

Said it before and say it again: If capitalism is more about extraction than about creating/adding value to the life of people – then capitalism is doomed to self destruction.

And yes: mankind will survive the end of capitalism.

And nature will survive mankind.

If politics has no solutions but only postpones mountains of problem: the politics is dead.

It would be dangerously arrogant to assume that the Western version of democracy is “perfect” (without a flaw) the non-plus ultra-version of democracy that does not need further development.

(there were little experiments with direct democracy and especially Switzerland has a long tradition… maybe democracy works better in small countries?)

This means that truly innovative regional democracy experiments and even experiments with different forms of finance and economics – a constant objective reasearch and development – of existing systems need to take place.

Mankind desperately needs innovative sustainable ways of survival and not a budget cut to schools and universities!

A digital dictatorship in 1984 style cannot be the “solution” but will create just more suffering.

But since the essence of capitalism “money” largely revolves around itself in a very egoistic manner – “the mother of Germany” Mrs Merkel and her party unfortunately massively lacks this awareness of transformation.

The problem mountain will just grow and grow – until it is no longer possible to ignore it, because the protests and the pressure to act becomes too great.

The nature of the powerful seams to be: ignorance is bliss nobody believes that new Hitlers could come to power all across EU and even in Germany – until it happens.

Like Fukushima: “Oh come on, a Tzunami of strength 10 hardly ever happens… Oooooops apparently, well, just 2 of 5 reactors exploded… let’s keep the other 3 running… forever and ever… and ever… and ever…”

What? No!

Change!

Build wind turbines + hydrogen storage gas stations and hydrogen cars!

The Japanese are actually ahead in this field, but nobody has heard of the world’s first mass-produced hydrogen vehicle called Mirai.

The term “Mirai” comes from Japanese and means “future”.

But why are there no gas stations for hydrogen?

Because US Rockefeller-Koch-Big-Fracking-Oil, Trump and their loyal car manufacturers BWM, Mercedes and VW lobbyists in Berlin prefer to “keep it up”.

The Kodak CEOs also thought they could ignore change and stay analog instead of going digital with cameras.

It didn’t take long, today (almost) nobody speaks of Kodak anymore.

Mercedes in Crisis Mode: too big to change?

https://www.handelsblatt.com/unternehmen/industrie/autobauer-daimler-schlittert-tiefer-in-die-krise/25336440.html