This stage has yet to be fully entered, but the fraying of Greece's current social and political order sends a strong signal about the likely future of the wider world: Passivity paves the way for ever more abuse and exploitation, more austerity, and greater hijacking of national and personal assets. Active, civil resistance is necessary to stop the loss of public sovereignty to private interests. Creative, viable alternatives . . to the currently corrupt and fraud-ridden global economic system, are essential. These alternatives and the implications of our current counterfeit-based wealth trajectory are explored in the next section of this article.
Part 2
As stated at the outset, only in a debt-based money system could debt be curiously cast as an asset. In this debt-based system we use "extend and pretend" as a quaint phrase referring to the financial lying that is aimed toward preventing the collapse of the debt-based system that is, in all likelihood, already doomed, by its initial design, to collapse.
This primer details the major components and basic evolution of fake wealth creation, accelerating debt expansion, the hollowing out of the economy -- and the inevitable financial implosion that will result if we do not take the proper steps to avoid it.
Implications:
The implications for this exponentially increasing dominance of fake wealth have only gotten more comprehensive and absurd since Zeus last summarized them in an article two years ago. (Unhinged: When Concrete Reality No Longer Matters to the Market (and What to Do About It). (Unhinged)
A few basic things, listed below, make a mockery of the entire global economic system, and big banks garnered these few things through a process known as "regulatory capture." They are:
1) Unregulated, unenforced rules (particularly for derivatives)
2) license to "mark to model" (assign your own values to your assets)
3) ability to peg present value to irrational "expected' future returns (based on the assumption of unlimited, exponential growth)
4) infinite leverage (no effective requirements for reserve capital in unregulated "shadow" markets)
5) massive size, so that the bank or company is "too big to fail"
6) non-transparency and non-accountability.
So here we have a system where a large bank or corporation can:
1) make up its own rules,
2) establish any value for any asset it chooses,
3) inflate that value a hundred fold based on presumed future value and returns,
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