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March 4, 2018 | New Economic ‘MODEL’ – the basics!

Donald B. Swenson: Born January 24, 1943, Roseau, Minnesota. Graduated H.S. 1961, Moorhead High, Minnesota. Graduated College 1968, Moorhead State University, Minnesota. Designated member of Appraisal Institute (MAI), 1974. Employed with Western Life Insurance Company, 1968 – 71; Iowa Securities Company, 1971 – 73; American Appraisal Company, 1974 – 81. Part-time teacher/valuation consultant/bartender, 1979 – 2008 (taught workshops at Waukesha County Technical Institute, Wi. and Madison Area Technical College, Wi.). Retired 2008 (part time teacher/blogger), AZ. Self educated economist/philosopher/theologian: http://kingdomecon.wordpress.com.

 

Those of us who have followed our economy for the past 50+ years understand that we live with a DEBT economic model which is dysfunctional. This DEBT model has run its course (now some 240+ years under this model) and most thinkers recognize that none of this accumulated DEBT (now near $752 trillion) can be repaid to our counterparties. Our DEBT model has produced mountains of unpayable debt and continuing national deficits with no options for any real repayment. I call our current model a one-way street with a cul-de-sac at the end. We have reached the end of this one-way street as of 2018.

 

If you look at our situation realistically, the math which makes up our economy does not work going forward. Math is the core of this current DEBT model. This means that our central planners (who administer this math system) must continue to temporarily prop-up these numbers (artificially) so as to keep the DEBT pyramid from totally collapsing. Unfortunately, this DEBT pyramid has also reached a threshold level where servicing this accumulated DEBT is becoming impossible. This reduces real economic growth and prosperity for our future generations continually. Our children can not service this growing DEBT and still prosper as economic agents on this planet.

 

All this means that the current DEBT model of economics (often called Keynesianism) is essentially over and a NEW MODEL is now needed for our planet. You can witness our impossible situation at this website: http://www.usdebtclock.org. Our total DEBT (including derivatives) is now nearing $640 trillion. And this is merely our American real-time debt. If we add unfunded obligations to this total our DEBT is over $752 trillion. Globally, the numbers are multiples of this number. Any student of math can realize that none of this DEBT will get paid back as there is NO WAY to grow our economy to the degree necessary so that the DEBT can be repaid. It’s impossible!

 

All this means that our current DEBT model is dead in the water and it must be wiped clean at some point (sooner is better than later). Wiping the numbers clean means declaring National bankruptcy and admitting what is obvious. WE ARE BANKRUPT! We are now living on BORROWED time (our many counterparties gifts) and this situation is unsustainable. We all need to recognize our situation and declare what is obvious. WE ARE BANKRUPT! The system is also bankrupt and the entire global cyber system will go down with our bankruptcy. We live in an interconnected financial world where others get affected by our impossible situation.

 

America has been the Big Kahuna on our planet (economically) since the end of WWII. This role is now ending with a bang (silently as the bang is digital and within cyberspace). But none-the-less, American leadership is waning rapidly as our counterparties recognize our dire financial situation. It takes no genius to analyze the numbers which have accumulated to our current level. The numbers are now transparent to the world: http://www.usdebtclock.org. America is BANKRUPT and living on BORROWED time. The END is near as the numbers speak loudly that the trends can not continue much longer.

 

So let’s recognize that the END of our DEBT model is here. We now need to start thinking about a NEW ECONOMIC MODEL for our future. What might this NEW MODEL look like as to the basics? My sense is that our children will determine what must happen going forward. Our millennials and those younger will way-in on our situation and then select this NEW MODEL for our country and eventually the entire planet. Now is the time to start thinking about the core principles for this NEW MODEL. Some obvious issues for a NEW MODEL would be the following:

 

  1. DEBT must not resurface in any new model. Any new model must be debt free and dynamic. A one-way street model (as our current Keynesian DEBT model) is not going to work going forward. This will not be a choice which any thinking person would desire going forward. (given the history of this current DEBT model). Debt must never again surface in this new economic model.
  2. MONEY must be gradually and totally eliminated as an economic tool…for the 1% to control and administer over the 99%. Fairness requires that equality must rule over all power centers. This means that all money units must eventually be eliminated totally. Money is merely a ‘tool’ of economics (a past idea) which has no merit in a NEW MODEL where real-time activity can be accomplished via volunteers, AI, and robots.
  3. The focus of any NEW MODEL must be ‘people’ first with fairness and equality as the core principles. ‘Give and it shall be given unto you’ is an appropriate mantra. Central Planning via a group of elites operating behind closed doors must be eliminated (totally). Transparency must be a core principle of this NEW MODEL. Decentralization must be one of the core principles within this model.
  4. Any NEW MODEL will need to be global in scale. The planet is now fully interconnected and wired for communication to all points and places. Resources must be shared as the planet is deeded back to the MOST HIGH CREATOR. The Creator must own all the resources as the Creator is sovereign over all and owns ALL. Man must be viewed as subservient to the Creator of ALL.
  5. One planet, under the Creator, must be the primary principle with no human KING or RULER overruling the common people and their choices. A decentralized economy allows for people to administer their economic problems within their sovereign venues. There is no need for a CENTRAL PLANNING committee for the planet. All current elites must step down from their positions of power and control.
  6. Robots and Artificial Intelligence can play a huge role in this NEW MODEL. Most production (goods) can be done via robotic means. Artificial Intelligence can monitor and provide real-time data/information for each decentralized venue. Labor can result from spontaneous communication via smart phone activity. Enjoying the work environment will be important as all economic activity will be via volunteers.
  7. Subjectivity will be the key philosophical principle. All persons will be viewed as subjective human beings as ONLY the Creator will be viewed as Absolute. The individual will replace the current STATE and this STATE system of collectivism. Self government (by each individual) will be the core principle which allows the system to flourish. The STATE will be meaningless under this NEW MODEL.

 

The above are a few basics which I think our younger generation will desire for their NEW ECONOMIC MODEL. Now is the time to think about this NEW MODEL as the current DEBT model (often called Keynesianism) is dysfunctional and obsolete. Anyone with a smidgen of understanding and wisdom can discern that the math under our current DEBT model is illogical and impossible to reconcile. A NEW MODEL is needed and the above is merely an outline of what I think will work (after the coming DEBT model collapses). Think for yourself and derive your own wisdom on these issues. Enjoy! I am: https://kingdomecon.wordpress.com.

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March 4th, 2018

Posted In: Kingdom Economics

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