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In this situation the society is constantly obliged to borrow, in order to service the debt, which adds to the debt. Even if it were possible, by some miracle, for the U.S. government and society to so raise the nation's productivity that the value produced would meet the debt service requirement with some profit remaining for the society to live on, the debt service requirements would continue, year after year, at infinitum, for there would still not be enough value generated to pay the debt down. In reality, however, the productive capacity of the nation is shrinking rather than expanding, as industries are torn down and the workforce is put to death as it were, through poverty.
So, what are the options open to society, to deal with this mess?
01
.1. An attractive option is to simply roll over the entire debt service claim into new debt for ever and ever. Of course, this won't work. There comes a time when the world simply runs out of investment funds, or the investors refuse to pour their wealth into a bottomless sinkhole.
.2. Another option would be for the society to simply default. In such a case the society could carry on. Wrong! Such an act would bring the whole financial house down, right across the globe.
.3. The problem might also be solved, so it seems, by the government printing itself more money, with which to repay the debt. Then, things can start all over, fresh. Wrong again! This kind of inflation would kill whatever industries did still exist.
.4. A bankruptcy reorganization might be considered, for the entire world-financial system, in order to protect all that is essential for human existence. The pensions, the industries, the banking system, all need to be maintained - which are threatened to be lost in a chaotic disintegration of the financial system. An orderly bankruptcy reorganization is what any bankrupt business is subjected to that wishes to survive. There simply exists no other option for society with which to protect its vital structures, than a bankruptcy reorganization; except, that may not happen as the political backing for it cannot be obtained. Indeed, it will take enormous moral courage for any government to go through with this essential step, and this courage may not be found. There is little moral commitment left in modern society, even that which is necessary to protect its own welfare, and possibly its very existence.
81
There are a few things quite certain, however. The promised balanced budget, for instance, that is so loudly promised, will never come about on the basis of the present financial platform, not in five years, nor in ten years, unless the defect in the system is repaired that caused the debt in the first place. Of course, this is all hypothetical, since the present system won't last more than a few months, not to mention, years.
The most likely thing we will see in the near term, is the #1 scenario being continued until the credit funds run out that currently sustain the dying system, or the market crash occurs that takes the banking system down with it.
The point is, that the current catastrophic situation would have never developed in a land-based feudal system. If a tenant farmer doesn't pay up, he simply gets evicted. The financial feudalism, however, which is a step removed from reality, allows mankind the freedom to attempt the impossible. The system becomes unglued when the impossible cannot be achieved. In a land-based feudal system the lord's claims might have been forgiven if the claims cannot be met. After all, whatever farm products are not produced, cannot be collected by the lord. In the financial, feudal system, however, this restraint does not apply, because the system is not reality oriented. And that is the system we are stuck with today.
No person was alert enough 200 years ago to detect the continuation and intensification of the feudal platform, that was deemed to have gone with the wind. This is how Political apathy works, at its finest, with repercussions that have determined the course of mankind for two centuries, marked by wars. Political apathy is a powerful factor. On it hangs the might of the oligarchy and its devastating effect on human development. By political apathy mankind's fate is sealed. But if this apathy is overcome, scientifically, the horizon opens to the infinite.
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