10 votes

What the root solution could be

Recently, numerous posts have asked the question of what is the real problem or solution? The implication is they are looking for that one end-all quick fix to completely turn a 180 on everything bad that's going on. While I don't think the steps toward accomplishing it are so quick, I think the root problem and the root solution is known by everyone here.

The symptoms are many. We have police state, government, political, media, corporate, geopolitical, resource, social, economic and many other types of problems. I believe they all stem from one single issue.

I don't claim to speak for everyone so I'll try to put this in terms of what I am doing and can do. Others may see it differently but I believe each person must make up their own mind. Hopefully, I can make a convincing argument.

That root problem is inequality of money. I'm not talking about some socialist movement to change that. I'm going to show how we can use the free market to do it ourselves, privately and regardless of the bank and government influence. First, the explanation of how it happened.

We all know that the Federal Reserve has used fiat money to cause inflation and rob us of 98% of our ROP (Return On Productivity). Fractional reserve banking principles works slightly different but causes the same result. In 100 years, we have experienced price inflation of around 2500% with wage inflation not keeping up at around 1000%. What the technical advancements of this period should have resulted in is 75% price deflation and 100% wage inflation. Basically, we're around 20 times as 'in the hole' as we could have been. I'd like to add a few more causes to this list.

Government sanctioned corporation status has increased the level of investment a company can tap beyond rational limits. Among other problems, this has allowed companies to grow too big for one country. Additionally, the stock market system, combined with compartmentalization and government sanctioned investor status (aka brokers, et. al.) has systematically given the lion's share of profits from these mega-companies to the banks. It has also given a tremendous amount of back-door influence over their actions. When combined with the political bribe power these banks hold, this control essentially removes all checks and balances on their will.

By this method plus the power over a deal by the simple virtue of being too big to not make a deal with, they have co-opted every industry there is. Most companies don't even realize they do the banks' bidding but when push comes to shove, they quickly fall in line. Debate on this is moot as you'll see.

Think of "I Pencil" and how many transactions, loans, investments, fees, certifications, licenses, fines and taxes are involved in every product and service (gov included). Now realize that between a tiny cut and a large portion of each of those is sent up the pyramid to the top. This gives them power and influence while removing it from us.

All we need to do is reverse this trend.

By taking this level of ROP from the people and causing wealth scarcity on such a grand scale, they accomplished two things. First is that they tied social standing to individual wealth. This means that just to maintain one's status, increasing one's income is a must. This has tons of moral implications as people will compromise nearly anything to survive. And climbing that ladder means compromise turns to active corruption.

The second thing this does is that it removes the power of change from the people. This causes apathy because people don't pound on a brick wall for very long before they give up. Often, however, this is seen as a cause but I believe it is a symptom from wealth scarcity.

Another problem that crops up from this is population attrition. It's daunting to think that we have to 'wake up' 10 million people and get them active to make a change. Unfortunately, the problem is much worse. Our population grows annually by 2 1/2 million new people. This is after losing 2 1/2 million to passing on. This means that 5 million 'new' minds come into the picture each year. Since the default status of all these people is 'not awake', e.g. living by the tube, indoctrination, ads and commercialization, this means WE must wake up 5 million each year just to stay level. Couple this with the apathy that comes from seeing hundreds of thousands in some rally or petition get easily dismissed and we end up losing the 'wake up' battle.

So how do we get people to fix this monetary inequality if we can't wake them up? We market to them. That's how.

If you want people to start watching the real news (only online now), you put together a competing news agency and make it better and cheaper. Figure out what you would want, how to incentivize people to contribute and how to make it addictive, design it and build it.

If you want people to stop paying the banks via their energy bills, make a better off-grid system and sell it cheaper.

Those are just two examples but there are many more. I use them first to show an example of how much price is influenced by how a company is funded.

Most manufacturing companies pay less than 25% of retail price to labor and materials. The rest goes to marketing, sales, legal and the biggest chunk, to investor return. If a company was funded as part of 'a movement', the last 4 expenses would go away. (DP sure doesn't spend 75% on them!) This is step one in making a select few products out-compete the mega-corporations now in charge.

Step two is to keep your eyes open to what is possible. I have done this for a decade now and identified two dozen business opportunities that are game changers. Many of these are more easily doable with a group's support (web virility, etc.) and many are technical breakthroughs that are still under the radar. Either way, let's just say that almost every technical problem has been solved.

How to fund? That's been a recent solution. Crowd-funding has recently crossed the line into the investment for equity region. This allows for much larger start-ups to get funded by the masses. Traditional crowd-funding sites also still allow for straight loans, donations and pre-sales formats. Either way, the 'broker' is gone. The hedge funds and derivatives are gone. The bank influence is gone and best of all, the banks are shut out of the profits.

With these type of goods and services breaking into the market, people will finally have the opportunity to buy something one time and be done. Gone will be the days of 'renting' a crappy mixer for 5 years at a time because theirs will outlive them. Gone will be monthly natural gas payments because their paid off solar thermal system will give them free heat for life. Gone also will be the scarcity that comes with paying over and over for the same things.

When you add up all the wasted expenses in our lifetimes, you see real quick that the average one-worker salary of $40k/yr would one-time-purchase everything a family now lives with, all by age 30. This is not only possible, but it is being implemented now. The great news is that when these savings begin to take off, they multiply exponentially. By avoiding interest on a car, you can cut insurance cost. By pooling that savings with others, you can avoid school interest. By family/parental lending, you can avoid home interest and high insurance rates there. By pooling all these, you can eventually self insure and save much more. Running this all the way out greatly depends on where you jumped in and where your family and friends are but suffice it to say that in 15 years or less, the entire economy can turn this way. That's fixed in three times my DP experience.

I've skipped many details so fire away with your questions and reasonable critiques. The original write-up of this has laid dormant at http://www.facebook.com/groups/172162406170203/files/ for over a year. If you are interested, look into the documents labeled "Action Plan".

Let's hear your comments.



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Mysticism!

If has been asked, What's the main problem? What's the solution? What are YOUR thoughts?

The main problem is mysticism, stated another way, mind created realities with its external authority cult mentality.

Which is a symptom of dishonesty and laziness that has been manipulated by others for at least 3000 years to gain unfair advantage in order to extract unearned values.

The solution is removing the virus of mysticism from our self and our species to free the conscious mind, unleashing the value creator that is our nature to the exponential benefit of all mankind.

How do we get from here to there?

Forbidding the use of initiatory force as represented by The prime law! As explained by Mark Hamilton in the following 15 minute video.

http://youtu.be/OkxjnnBL7V8

The creation, production and fair exchange of values is the business of evolving consciousness, love and life.--Craig Johnson

the problem is

Central planning the federal reserve system end it end it! and then end the war on drugs and feed the poor.

Albert Camus — 'The only way to deal with an unfree world is to become so absolutely free that your very existence is an act of rebellion.'

What happened to BoA when people pulled 1% out

of their holdings? They screamed bloody murder because they knew that a couple more percent and they were under. The big banks are so leveraged now that they cannot sustain ANY long term reduction in revenue.

If people paid off their loans and then their bills, their savings would soar. The result of that is that they would stop paying the member banks of the Federal Reserve as much money.... permanently.

You can do all of that BUT ...

... all the government has to do is pass two laws:

"No person shall engage in crowd funding." They can define "crowd funding" any way they want. They can define "person" any way they want. They can set any penalty they want.

And ...

"No person shall use any bank or bank-equivalent other than those that are federally chartered or state chartered."

Bingo. You are now engaged in an uphill fight that will eat up your time and other resources.

THE ONE BIG PROBLEM is that the government is too damn big. The employees of the government do not uphold their oath of office. They violate the highest law in the land.

So, a good place to start is to INSIST on enforcing that document at all levels. That is what Ron Paul has tried to do for 40 years.

It may not be an ultimate answer, but it is a good place to start, and it is understandable by anyone who cares to read the document.

Cyril's picture

I agree on the overkill size of government.

I agree on the overkill (pun intended) size of government.

And it's only the sad and outraging assessment everybody here can make.

I believe the evil of perverted laws has many branches, although only a few roots. Here is one of the latter I can think of, for us to strike at, for our kids future:

http://www.dailypaul.com/274232#comment-2954690

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

They could make those laws

but they just lost in the courts in getting crowdfunding stopped. As I wrote below, the SEC wanted to place the same restrictions on these 'investors' that it has in place on traditional investors. So, that's unlikely in the short term at least.

However, even if they did, people would just move to partnerships and such. I think the game is up on the stock market. Too many people are waking up and realizing that they have paid through the nose (both the owners and the investors) for so-called 'financial services' that a computer could do instantly and for free.

So, either way, businesses will soon begin to run from institutional investing and IPOs because they can avoid the massive running overhead that it costs. And when they do, one of two things will happen. Either the owners' profits will soar or those profits will be split to include higher wages and lower prices. Either of those will help return the market to sanity and lower many social costs.

And by selling products that no longer rely on perpetual growth (to satisfy perpetually greedy investors), people can again choose quality over disposable products. And that, in turn, results in lowering the overall lifetime expense of a family in the exponential manner I described above.

This much, I believe, is inevitable with or without government intervention of either type.

Did you see the section where I show the numbers of 'new recruits' that are needed to win any 'awakening' movement? I think that explains why after 40+ years, no progress has been made.

Cyril's picture

BUMP.

BUMP.

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

Cyril's picture

Interesting post.

Interesting post.

I've always found the crowd-funding idea interesting, when it's kept as something strictly voluntary.

I think there is still a lot of unused potential for it, and I believe the best incentives and results will be obtained, for both the consumers and providers, by local usage (in space).

I would love to have oversight and control of funds I'd give to the businesses, schools, associations, etc, of wherever I live.

Problem is: we have almost nothing spared left to give to those after the statists have sucked us.

We need to go more SoLoMo - social, local, mobile - combined with real money for trade.

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

They actually had a big fight

in the beginning over the right to offer business equity in return for 'open call' type of donations. I think that was the gist of it. The SEC fought them for 2 years or more and finally set limits on how much each investor could donate/invest based on their income level. So it still kind of goes back to the control system where only the big boys get to risk a lot on the best deals.

Either way, I'm with you in thinking this is a great step in the right direction.

Do you think the rest of the plan would make a dent in the banker's wealth? My estimation was that the tipping point would take about 8% decline in recurring revenue to do so.

Cyril's picture

We ought to keep biting

Every time you stack one more ounce of silver or one more gram of gold, you are already biting at them.

We need to keep doing this and encourage everybody to go more local, towards those businesses we'll find striving to opt out of this Monopoly game as well.

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius