Conquistadors of Credit

After the physical exploitation of the earth is completed, stripped of its metals and petroleum, the bankers undertake the credit exploitation. This entails the offering of credit to the governments and citizens of the poorer countries — for the consumption of gadgets or creation of businesses or the building of infrastructure — and the long-term interest harvesting of the credit-based GDP growth that follows.

 

The bankers are the new risk-taking explorers of the planet and through securitizations, derivatives, and explicit State backing (tax payer guarantees limiting their downside risk), are able to strip wealth out of even the poorest inhabitants.

 

It all seems good and right in the beginning as the credit bubbles are created in the poorer countries, and the citizens are able to buy goods and services they were historically unable to afford. But the only real winners after the inflationary collapse can be the asset holders. And these assets will eventually be repossessed by the banks after the extension of credit has peaked, overall growth has flagged, deflation has destroyed those who were too leveraged, and the loans have now become unpayable.

 

It will be many generations before the collapse of the banking created credit-based growth model. 80% of the planet awaits the promises of growth offered by the banking credit apparatus. The Western world has been harvested, its economic soil deadened, the people and governments no longer able to accept further credit exploitation. But the impoverished rest of the planet is waiting and willing and the bankers have only just begun to exploit it.

Bellum De Pauci Contra Plures

9. The State comes to exist through submission. The strongest create the State to further their dominion over the weaker masses. They gain the acceptance of the masses by force and by hand-out, and beguile those masses to further solidify their power. The State does not exist without the complicity of the weaker masses.

14. Centralized government appeared when man realized his hoarding could be better facilitated through the threat of violence and imprisonment, rather than actually carrying that threat out: The realization that taking a percentage of a man's wealth over the course of his life is more efficient and lucrative than stripping him of his wealth and killing him today.

17. Hobbes argued that the appearance of the State ends the war of all against all (bellum omnium contra omnes) replacing it with a broad peace. Indeed, the State provides the masses protection from being plundered by criminals and the oligarchs of other nations. But beneath this surface peace, the domestic oligarchs continue their plundering legally through institutions of their own design and within the continually shifting laws of the State.

20. The State exists to protect those who have hoarded, and those who have hoarded contrive the State to hoard still more. The State is a mechanism for plundering.

21. Contra Hobbes, the creation of the State does not end any existing war of all against all, but rather expands the war of the few against the many (bellum de pauci contra plures). Indeed, it is a war that the expansion of the State only proliferates, further concentrating power and wealth with the oligarchs.

25. The State expands through regulation, subsidy and taxation, thereby continuing a progressive liquidation of the smaller, marginal producers, and further growing the hoarded wealth of the privileged oligarchs. The State exists to facilitate a wealth transfer from those without explicit State protection to those with that protection.

26. When there is no longer additional wealth for the oligarchs to accumulate, or when the accumulation of more wealth might destabilize the society and incite the masses to revolt, the State will instead look beyond its borders, to accumulate the wealth of other, weaker nations.

29. The State exists to wage war and create new wars. The State is the apparatus of war and the will to war.

37. The democratic state, the communist state, the capitalist state, the feudal state, the distatorship state, et al. are each distinctions without difference.