ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel
  • »
  • Politics and Social Issues»
  • Economy & Government

Banking, the Government and the Elite -- What are their Motives?

Updated on November 20, 2011

And the band plays on!

How do the Banks get away with it?

Unemployment, resource and product shortages, bankruptcies, bank failures and mortgage foreclosures – sound a little familiar?

How did we reach this stage? To understand our current state of affairs we need to look at our banking system and then how governments tend to look the other way while corporations had a “field day” at the public expense.

Currently, all nations have a type of monetary system in which virtually all money is created through the issuing of loans. Thus, nearly all of the money in existence represent debt. For those not familiar with banking; basically, money is not that substance that is kept in the vault but, a fictional entity created out of nothing by bankers increasing to facilitate the keeping of their accounts.

But, unfortunately, a problem arises – where does all the money to pay back the interest on the loans come from? Ultimately, that money has come from new loans, taken out by others somewhere else within the financial network of the economy.

If money is not being loaned out (that is, created) at a pace fast enough to match the growth in goods and services, then not enough money will be available to repay existing loans (plus interest) and the resulting bankruptcies and foreclosures – in extreme cases – cause the economy to go into a tailspin of cascading financial chaos.

It is possible for a crisis to occur in the financial system even when energy, raw materials and labour remains abundant, as happened in the 1930’s. But is it possible for the financial system to remain healthy through a physical environment depleted in natural resources? Unfortunately, highly unlikely. It is more likely the decline in our energy needs that will trigger a financial crisis through reductions in goods and services.

Now politically, what would this mean? It is easier to contemplate sharing our resources when there is plenty to go around but when what little one has is disappearing, it will be greater stress on politicians to resolve the crisis.

If the Right gains the upper hand, the result will probably be the undermining of civil liberties; the scapegoating of leftists, minorities, and foreigners and the expansion of military and police powers (Homeland Security in the States?). If the Left gains the upper hand, there might be a revolt against the wealthy.

The Right feels there should be little or no involvement by the government except making of polices ( in favour of the multinationals and the wealthy elite) and military issues. The Right will feel obliged to protect those with disproportionate wealth and secondary to members of the lower classes who envy the wealthy or who can be persuaded that he highest aims of the state are law, order and security.

The Left feels that the government should intervene and regulate the market so that members of the lower classes will be provided by a minimum of needed resources for all citizens.

Is it better to share or compete? Do you feel that the middle class is being eroded away? That as middle class citizen, your vote mean little or has no impact?

What does democracy entail? It is a social process which citizens collectively and consciously control the allocation of natural resources and that everyone should be participating in making decisions. Wouldn’t you say that the Left is closer to democracy than the Right? The Right believes that democracy brings freedom for all but actually it allows freedom for the rich and powerful only. Which one would you have governing our province (state)? Our country? The Left or the Right? Think carefully about leaders and party lines the next time you vote in an election.


    0 of 8192 characters used
    Post Comment

    • road2hell profile image

      road2hell 6 years ago from Linden, AB

      Thank You, HSchneider. There will be more Hubs about our economic crisis. The more knowledge we have, the greater the opportunity to make changes. But we must have a spokesperson to lead the Wall Street Protestors exactly what we want our leader to do. (Obama?) We, the people, must set the agenda, NOT the government or anyone else that has a immoral abuse of their power.

    • profile image

      Howard Schneider 6 years ago from Parsippany, New Jersey

      Excellent Hub Road2Hell. I agree with you that the left is closer to a democracy than the Right. The Right represents the wealthy 1%. I will be voting for the Democrats on the Left next November. Republicans have gone much too far Right.