DENVER, Oct. 6 /PRNewswire/ -- The following is the first of a two-part statement by J. Moromisato
1. A Government by the Super-Rich for the Super-Rich: How They Did It
Living in a democracy, as I think we do, don't you find it strange that a mere one percent of the people, the super-rich, can prevail over the interests of the remaining 99%? How do they do it!?
Of course, in less enlightened places, they just rig elections, and silence the opposition, but that wouldn't work here, for sure, nor in most other developed countries.
I didn't have an idea of how they did it until I decided to follow the money.
Money is a very curious thing; we all think we know exactly what it is, but we really don't. We are especially unaware of two of its most important features:
One, money is created by banks and other financial firms by the simple process of lending. Yes, I know you think that the Fed creates the money, but the Fed money, also known as cash or currency, makes up less than 1% of the total amount of money owned by you, me, and the super-rich.
Two, money doesn't normally disappear. All the money created by the financial system, since way back, still exists and belongs to someone, mostly to the super-rich. When a bank creates money, in the process of making a loan, that money is received by the borrower, who uses it to pay his debts and other expenses; that money circulates in the economy where everyone who gets part of it would save a bit and spend the rest. At the end, the entire amount borrowed ends up back in the bank, as deposits of the savers.
We are now prepared to follow the money.
Let's follow the savings first. As we have seen, the money that circulates in the economy is gradually depleted by saving, which is done mostly by the super-rich; thus, the infusion of credit money from the financial system is crucial to the economic activity. As you know, it was the collapse of the flow of credit what caused the recent Great Recession.
The super-rich own the financial system, which has the power to create money, and which controls the flow of credit, which keeps the economy going. Are you getting the picture now?
The question is, again, how do the super-rich manage to preserve their almost absolute financial power at the expense of the great majority of voters in a democratic society?
(To be continued)
SOURCE J. Moromisato