Wednesday, February 20, 2013

Money Is A Form Of Social Control And Most Americans Are Debt Slaves

Dees Illustration
Michael Snyder
Activist Post

Is America really "the land of the free"? Most people think of money as simply a medium of exchange that makes economic transactions more convenient, but the truth is that it is much more than that. Money is also a form of social control. Just think about it. What did you do this morning? Well, if you are like most Americans, you either got up and went to work (to make money) or to school (to learn the skills that you will need to make money).

 We spend a great deal of our lives pursuing the almighty dollar, and there are literally millions of laws, rules and regulations about how we earn our money, about how we spend our money and about how much of our money the government gets to take from us. Not that money is a bad thing in itself. Without money, it would be really hard to have a modern society. Unfortunately, our money is based on debt, and debt levels in the United States have exploded to absolutely unprecedented levels in recent years.

The borrower is the servant of the lender, and if you are like most Americans, nearly every major purchase that you make in your life is going to involve debt. Do you want to get a college education so that you can get a "good job"? You are told to get a student loan. Do you want a car? You are encouraged to get an auto loan and to stretch out the payments for as long as possible. Do you want a home? You are probably going to end up with a big fat mortgage. And of course I could go on and on and on. The cold, hard truth of the matter is that most Americans are debt slaves. Most of us spend our entire lives trapped in an endless cycle of debt that we never escape until we die, and meanwhile our years of hard labor are greatly enriching those that own our debts.

Have you ever found yourself wondering why you can never seem to get ahead financially no matter how hard you work?


Well, it is probably because you have gotten yourself enslaved to debt.

Just consider the following example about credit card debt from a former Goldman Sachs banker...
On the debt side of things, how much does your credit card company earn if you carry just an average of a $5,000 credit card balance, paying, say, 22% annual interest rate (compounding monthly) for the next 10 years? 
In your mind you owe a balance of only $5,000, which is not a huge amount, especially for someone gainfully employed. After all, $5,000 is just a quick Disney trip, or a moderately priced ski-trip, or that week in Hawaii. You think to yourself, “how bad could it be?” 
The answer, including the cost of monthly compounding, is $44,235, or about 9 times what it appears to cost you at face value.
But a large percentage of Americans never pay off their credit cards at all. They make small payments each month, but then they just keep on adding to their balances.

In the end, that is financial suicide.

If you carry an "average balance" on your credit cards each month, and those credit cards have an "average" interest rate, you could end up paying millions of dollars to the credit card companies by the end of your life...
Let’s say you are an average American household, and you carry an average balance of $15,956 in credit card debt. 
Also, as an average American household, let’s assume you pay an average current rate of 12.83%. 
Finally, let’s assume you carry this average balance for 40 years, between ages 25 and 65. How much did your credit card company make off of you and your extreme averageness? 
Answer: $2,629,618.64
Sadly, approximately 46% of all Americans carry a credit card balance from month to month.

How stupid can we be as a nation?

When you become enslaved to the credit card companies, your toil and sweat makes them much wealthier. It is a form of slavery that does not require anyone pointing a gun at you.

But we never seem to learn. Incredibly, 43 percent of all American families spend more than they earn each year.

As the chart below demonstrates, consumer credit actually declined for a short while during the last recession, but now it has turned around and the growth of consumer credit is on the same trajectory as it was before the last economic crisis...


Today, the total amount of consumer credit in the United States is 15 times larger than it was 40 years ago.

And every major "milestone" in our lives typically involves even more debt.

-The total amount of student loan debt in the United States recently passed a trillion dollars, and approximately two-thirds of all college students graduate with student loan debt at this point.

-Total home mortgage debt in the United States is now about 5 times larger than it was just 20 years ago, and mortgage debt as a percentage of GDP has more than tripled since 1955.

-Car loans just keep getting longer and longer, and approximately 70 percent of all car purchases in the United States now involve an auto loan.

-Want to get married? That average cost of a wedding is now $26,989 which is probably going to mean even more debt unless you have wealthy parents.

-Do you have a serious medical problem? According to a report published in The American Journal of Medicine, medical bills are a major factor in more than 60 percent of the personal bankruptcies in the United States.

Are you starting to understand why approximately half of all Americans die broke?

And I have not even begun to talk about our collective debts yet.

Government debt is a collective form of debt. You may not have voted for any of the politicians that have been racking up debt in your name, but part of it still belongs to you.

Since the year 2000, state and local government debt has more than doubled. These are collective debts for which we are all responsible...


And of course the biggest collective debt of all is the U.S. national debt.

In a previous article, I discussed how the national debt has exploded out of control in recent years. If you can believe it, the U.S. debt to GDP ratio has increased from 66.6 percent to 103 percent since 2007, and the U.S. government accumulated more new debt during Barack Obama's first term than it did under the first 42 U.S. presidents combined.

When you break things down by household, the numbers look even more frightening.

During Barack Obama's first four years in the White House, the amount of new debt accumulated by the federal government breaks down to approximately $50,521 for every single household in the United States.

And as I have mentioned previously, if you started paying off just the new debt that the federal government has accumulated during the Obama administration at the rate of one dollar per second, it would take more than 184,000 years to pay it off.

Well, you might argue, none of that debt will ever be paid off in our lifetimes.

Slave Queen 1oz. Silver Medallion
And you would be right.

But what we are doing is consigning our children, our grandchildren and all future generations of Americans to a lifetime of debt slavery.

How nice of us, eh?

Over the past 10 years, the U.S. national debt has grown by an average of 9.3 percent per year, but the overall U.S. economy has only grown by an average of just 1.8 percent per year.

How do we expect to continue doing this?

Fortunately, more Americans are starting to wake up to how foolish all of this is.

For example, the following is what Home Depot Founder Kenneth Langone told CNBC on Tuesday...
"The fundamentals haven't changed ... And we don't know when the storm is going to hit," he predicted. "It has to happen.If you look at our debt to GDP, eventually you reach a point where there's no turning back." 
He used an analogy to make his point. "If you had one meal left, and you had your grandchild with you, would you eat if or give it to your grandchild?" 
He said all people would say "give it to my grandchild." 
But pursuing the president's vision, he argued, "[Is] eating the grandchildren's breakfast, lunch and dinner right now. And the [grandchildren] haven't been born yet."
What we are doing to our children and our grandchildren is beyond criminal. We are selling away their futures in order to make our lives more pleasant.

Right now, we are stealing more than 100 million dollars from our children and our grandchildren every single hour of every single day.

So where is the outrage over this theft?

Sadly, most Americans don't even realize that all of this is by design. When the Federal Reserve system was created back in 1913, it was designed to get the U.S. government trapped in an endless spiral of debt.

And it worked. Today, the U.S. national debt is now more than 5000 times larger than it was when the Federal Reserve was first created.

Our society has become addicted to debt, and that means that we have become addicted to slavery.

We are not the "land of the free". The truth is that we are now the "land of the servants".

Over the past 40 years, the total amount of debt owed in the United States (government, business, consumer, etc.) has grown from less than 2 trillion dollars to more than 55 trillion dollars...


So who benefits from all of this?

I talked about this in a previous article. The ultra-wealthy and the international bankers make enormous profits by lending money to all the rest of us.

According to a stunning report that was released last summer, the global elite have up to 32 trillion dollars stashed away in offshore tax havens around the globe.

How did they get so much money?

The borrower is the servant of the lender. They have gotten rich at our expense.

But most people live their entire lives without ever understanding how the game is being played.


Today, most Americans see that the Dow is back above 14,000 and they hear the mainstream media telling them that happy days are here again and so they just believe that things are going to turn out okay somehow.

And it certainly does not help that most people seem to let others do their thinking for them. In fact, about 23% of all Americans can't even read at this point.

So is there any hope for us?

Please feel free to post a comment with your opinion below...

This article first appeared here at the Economic Collapse Blog.  Michael Snyder is a writer, speaker and activist who writes and edits his own blogs The American Dream and Economic Collapse Blog. Follow him on Twitter here.


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11 comments:

Anonymous said...

Michael,

Even if money were not based on debt, it would still be a coercive system that controls the lives of all of us. The problem is not fiat, debt-based money; but money itself.
As long as money exists, people will continue to be paid off to do just about any immoral action you could think of.
Money was also invented in an era of extreme scarcity. A scarcity which no longer exists due to the exponential increase in technological development.
Since scarcity of resources no longer exists (for the most part), money is no longer needed; and is, in fact, detrimental to further human progress.
We must break our dependence on money completely if we are to truly be 'free'.
For more information on how this is possible, Google the Zeitgeist Movement and the Venus Project.

Brendan R

Anonymous said...

I might add that it is not just that our money is based on debt, we have given over monopoly control of our currency and money supply to a private central bank. Who constantly devalue our fiat currency causing prices to rise faster than wages, making the producers more money and the consumers less, which causes the income inequality gap to grow as well.

Anonymous said...

There is hope, perhaps, if we are able to reach young people. School is not really teaching the young. Instead, it is stealing from them their creativity by forcing them to a scheduled program, their will power by making them obedient to authority, and critical thinking by using the method of memorization and repetition. All this makes it easier to load programs into their minds which continues on . School is programing the future generation of adults to fall into this economic enslavement trap.

Anonymous said...

Debt Money Tyranny defined in graphical form...

http://www.keepandshare.com/doc/4768883/debtmoneytyranny-6-1-pdf-60k?tr=77

Debt Money Tyranny is the Trojan Horse that enables **ALL** the other top down psychopathic tyranny that afflicts the common person.

Spread the word and win by actively resisting in a peaceful, economic way.

This is a financial Art of War operation and we need to fight it financially as outlined on page 2 of the Debt Money Tyranny PDF.

Anonymous said...

Slaves to our own greed in the form of debt. I've been saying this for years. The truth is we are all poor. There is no middle class it only exists as an idea. If your in danger of losing your home and your car or truck or both if you lose your job then you are poor...working poor but poor none the less and we'd be far better off if we could see ourselves this way rather then trying to maintain the illusion of wealth and success.

Anonymous said...

Back in the "good old days," us serfs were given a free home to live in. We were "allowed" to keep a portion of the land we farmed, and the meat and milk from animals we grazed, to support our family. In the case of drought, our masters (the nobility who owned the estates) would take from food stores to keep us alive, because they needed us alive and productive. If invading hoards attacked, our masters would defend us, for similar reasons. If we got sick, the lord of the manor would send the estate's doctor to visit, and he would prescribe herbal preparations that were far more effective, with fewer side affects and free for the gathering.

Today, we are still slaves, but are less fortunate than our serf ancestors. We are not allowed to keep or use any of the products of our labor. Instead of housing and feeding us, our masters sell 100% of the products we help create, and give us a "stipend" which always falls short of meeting our basic needs (because other "masters" need to profit from our labors too, e.g. landlords, bankers, hospitals, utility companies, and naturally our governments and the corporations who sell us what they refer to as food). With an entirely brief exception in the 50's and 60's, words like "disposable income," and "leisure time" act as the carrots attached to sticks which keep us on a treadmill, certain that "one day" we too can "succeed."

I'd rather be a serf. Once I could no longer work, naturally, I'd be put out of my misery, or if lucky, could live out my days in "common land" (rather than being arrested as a vagrant, as would now occur), but at least I wouldn't be lied to. And if I worked harder, I could increase my income, because the 10% of the fruits of my labor I was allowed to keep would be greater. I could sell this excess, be paid in precious metals instead of cotton/paper, and put it aside for the benefit of my descendants.

So long as corporate government (synonymous terms) are allowed to rule us, and are allowed to own land that they they "claimed" on the basis of their unchallenged "superiority" to us, or repossessed after charging exorbitant interest, we will never be free. At the core of the problem is our need to have someone in charge. I am not suggesting an anarchist solution, but merely suggest that so long as we allow others to tell us what rights we are and are not allowed to exercise, we are doomed. And because whatever system is established, anywhere, becomes quickly corrupted, the idea of a government guided by ethics and nobility is an illusion. Today, there is virtually no place in the world to go where one can escape this economic slavery; no land a person can build a simple shelter on, no way to obtain uncontaminated food from the land and sea through one's own effort, and basically, no way to escape. Although in recent years there have been a few articles about small groups of individuals (often techies) who have considered buying a small island and setting up their own sovereign society. I don't know if they also plan on running it without currency (meaning they would have to be entirely self sufficient), but it seems this is the only means by which any of us can even dream of escaping. Anything else is, unfortunately, no more effective than any other form of complaining. Identifying the problem in this case does not lead to simple solutions.

Anonymous said...

Anonymous, you are correct. But on this site, you are very likely preaching to the converted. As you say, "education" or information needs to get out to people.
In this respect, my own working conclusion is to focus on the info regarding free energy - and specifically Dr Keshe's at www.keshefoundation.org - as this is a tech you can buy TODAY abnd which has been officially accepted by Japan and Italy among others.
Once people KNOW they can get confidently off-grid, what possible argument could the plutocrat psychos give against that? It would also serve to bring about a different way of thinkin gabuot the world and one's place in it and open people's minds to a changing paradigm.
No-one would give it up and it would be a benefit worth fighting for - as opposed to personal sovreignty, which people don't seem to value that much at the moment.

Anonymous said...

If reading this article has left you despairing as to whether there is any hope left for humanity then trust me when I tell you there is. Do a yourself a big favour and search for One Peoples Public Trust/OPPT
The war against these tyrants (read FED, BIS, Rothschild etc) has already been won in the courts of the UCC. They have been foreclosed upon. There is at present a complete and utter media blackout on this event but it happened none the less. Our future is in our own hands. In the age of information... Ignorance is a choice

Anonymous said...

Money is a form of social control? A form? I thought it was THE #1 form of social but what do I know.

aspendougy said...

There is no "they" or cabal that forces people into debt. In the vast majority of cases, people simply choose to spend more than they earn. If the federal government can run up debt endlessly, why not the individual?

Anonymous said...

Hiya all, anynody heard of the One People Public Trust (OPPT)?

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