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The problem

Is a very old thing, Aristotle already talked negatively about it: Whoever has a lot gets more and more and whoever has nothing has to earn it for the money maker. In this way, money automatically multiplies without the owners having to do any work for it, but since money can't multiply, I mean money doesn't have sex and doesn't have children unless the central bank prints some, the work has to be done by those who cannot collect money (for whatever reason) and they get less and less money for their work, with constantly rising prices. As a result, the rich are getting richer and the poor are getting poorer. But let's take a closer look at the technical version of this statement:

In our economies there are very different growth curves

a) the exponential growth, it grows like a disease like cancer for example. Also epidemics spread like that.
b) the linear growth, a small part of economists think that this solve our problems but that does also not work because the capital grows to fast too and we have:
c) the natural growth, almost everything natural in the world grows like this: trees eg growing until they are grown up, then they stop growing, That is the way it is on Earth.
d) The profit must be decoupled from economic growth and grows therefore also exponentially.

Different curves000s Spacer 1004c1 Econimc Curves

Interest and yield describe the right of the individual who succeeded in saving, hoarding, withdrawing his financial surpluses, i.e. funds that he does not need to live, from the market and issuing them again as credit, but then, interest or, to charge a direct share of the borrower's profits, known as the rate of return.

Credit is both direct and indirect, and there are direct and indirect borrowers.

So the worker in a factory is actually an indirect borrower, the direct borrower is the factory owner who took out the loan from the bank. The bank is the direct lender and the customer of the bank who hoards his money there is the indirect lender.

Since the factory is also a stock company, there are even more direct lenders, namely the owners of the shares, the retirees who invest in a stock font are again indirect lenders. Here the direct lenders such as hedge fund managers earn money from the indirect lenders, in this example the pensioners.

All lenders, both direct and indirect, are now earning a share of the factory's products. In the form of interest or returns.

The direct and indirect borrowers have to pay for this from what they earn through their work. Ultimately, however, the profit must be constantly increased by the exponential increase in capital, since more and more has to be paid to the lenders. The first sign of this mismanagement is inflation. This describes the attempt by the factory owners to raise prices to meet the ever-increasing profit needs of the lenders. The immediate response of workers to offset this with wage increases eventually leads to runaway inflation.

But it still works relatively well as long as there is an immediate need for goods, if the saturation point is reached, the so-called point X the things will went wrong. The system can now only be kept alive with measures. First, wages were cut, workers laid off and prices increased. It didn't work that way. New measures were invented. The financial crisis 2008/2009 was the first sign of that the new measures failing too.

  • The low-wage sector by mostly foreign workers or as in Germany by Hartz IV, the unemployed are forced to work below standard to work for little money. In the US, family breadwinners often have to hold two jobs...
  • Outsourcing of work to countries with no labor protections and low wages with little or no environmental protection regulations
  • Artificial reduction in the lifespan of the products or constantly new systems and/or an end to support from hardware and software companies... lousy product qualities with short lifespans
  • Merciless contamination of the environment in which we live through exhaust gases and toxins from production, means of transport, plant cultivation and factory farming...
  • Large-scale deforestation for monocultures or animal husbandry
  • Consumption of important groundwater resources for these monocultures or animal husbandry
  • Exploitation of raw materials in oceans on the seabed in protected areas, often by poor people and children
  • Consumption of important groundwater resources for precisely these exploitations of raw materials

    Technical measures:
  • Issuance of insufficiently funded credit and trading in such credit
  • Lowering of one key interest rate to push normal savers into the stock exchanges
  • Mass buying of bonds with printed money from the national banks
  • Profit optimization through island companies and mass tax evasion through relocation of company headquarters to other countries where the money is not earned at all.

All these measures, of which there are many more, the ingenuity of the operators is really inexhaustible, are ultimately completely ineffective because the dynamics of interest and returns are so enormous that even a single cent becomes unaffordable over time.

Table Josefcent   Aristateles said

This is the inner defect of capitalism that we must finally acknowledge. The main reason why my statistics have always been correct over the years is that I always fully included this defect and its effects in my calculations and did not indulge in various fantasies like others.

You can only exploit this imbalance as long as it runs and hold it at life it as much as possible. Raising and lowering the key interest rate is not a solution either, it only means that poorer people who want to save a small safety cushion can no longer do so. These, as well as pensioners, for example, are being pushed into the stock exchanges and thus contribute to uninhibited economic production. Ultra-loose monetary policy is only fueling more debt and central bank bond purchases are fueling inflation. The whole system was hit so hard again in 2019 that there was no year-end rally. The smallest disruption in such a phase immediately leads to galloping inflation. First in Turkey, then in almost all southern European countries and finally also in Germany and the USA. The war in the Ukraine is of course contributing to the rapid loss of purchasing power in Europe, especially since everyone is now trying to raise their prices quickly in order to be able to cash in properly in advance. This new, relatively large war is ultimately just also a consequence of capitalism and will contribute significantly to the surface warming of the earth. The signs of war was starting between the USA and China when Donald Trump was President, because an economi war are the first signs. Although the eastward enlargement of NATO could hardly be avoided, because the Eastern European countries were dying to escape the social dictatorship of the Soviet Union and to be integrated into the wonderful consumption of the West, it was fundamentally wrong, but makes it clear once again that with capitalism war is also inevitable, because the arms dealers always want a piece of the pie and usually not a small one. It is wrong to name the war as the culprit for the economic problems, because there is currently no war in the USA, but a blatant economic and social imbalance, even before the corona virus.

Ultimately, with all our supposed successes, we have born up a very bad thing that will eventually hit us like the dragon's tail at the end. Here the full force of our violent and anti-social mismanagement is revealed.

044v2 Aristoteles   000v2 Dia Economy + Temp

We're obviously making mistake after mistake trying to run a system that can't possibly work. The biggest mistake, however, was probably trying to compensate for economic growth through overproduction and mass consumption via advertising. The end result is surface warming that will threaten all of our survival on the planet. The graph above is intended to illustrate how the increased economic growth affects the surface warming of the earth. I developed this graph from the social, environmental and economic reports of the countries and the new environmental report of the IPCC from 2021 as well as the calculations and forecasts about the economic growth of various banks. When the two characteristic curves were put together, there was a frightening correlation that leaves no hope for improvement. This calculation suggests that surface warming will take on a momentum of its own by 2050 that can no longer be stopped. Well, ultimately this is also to be seen in the context of certain commandments. How was that again? Overindulge is a mortal sin? We could argue about matters of faith here, but we can't help but admit that this rule was created for good reason. And that now that we clearly see cause and effect, it's pretty anti-social to just keep going and postpone the right measures until later when our children have to deal with what we, in almost 200 years, have done.

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