A Financial Pyramid Based on Credit

Where do economic crises come from and why are they man-made?

Let’s start by redefining what the capitalist mode of production is. It’s generally accepted that this is an economic system based on private ownership of the means of production, the exploitation of wage labor, and (most importantly) the extraction of profit.

Inevitably, the question arises: where does profit come from? Marx, for example, devoted a significant portion of his main work, “Capital”, to this. However, the creation of surplus value (the price of a commodity minus the cost of production), which is essentially profit, does not explain why the price of a commodity under capitalism ends up being higher than the cost of production. After all, before the so-called market economy, the price of a commodity was equal to its cost of production. Where do the extra money come from? The source in the capitalist system is one — bank (usurious) loans at interest. Loans are provided to all three key economic agents: the state, real sector enterprises, and households. It is this “injection” of additional (not directly related to production) money through all three channels that creates additional solvent demand and allows the producer of goods and services to set prices higher than the costs of production. Which ultimately forms profit.

But doesn’t such an “injection” of additional (not directly related to production) money into the economy create a kind of pyramid that inevitably leads to a crisis? In fact, this is exactly what happens. And it’s called the “crisis of overproduction”. However, this has little to do with the fact that there are significantly more goods and services being produced than there are consumption opportunities. Instead, it relates to a drop in solvent demand. Why and when does this happen?

Crises occur when the outflow of money from the real economy into the pockets of bankers (since loans must be serviced) reaches such a volume that this solvent demand becomes lower than the costs of production.

Remember, in a market economy, all money is credit.

Therefore, if usurers, actively issuing interest-bearing loans, first stimulate the economy and then abruptly put the brakes on, pausing the credit “injection”, a disbalance in the supply and demand market arises due to an artificially induced “money famine”. Crises occur. And it can be safely asserted that all of them are absolutely man-made.

After all, crises are the time when bankers reap the main harvest.

Firstly, it’s the collateral of bankrupt clients. As everyone knows, loans are almost always issued with collateral, the value of which is set at least twice lower than the real value of the borrower’s asset. Secondly, bankers buy up other greatly devalued assets of the real economy “on the market”, as they have plenty of money for this. It’s worth noting that from time to time, the largest banking houses, which form the basis of the so-called “world government” or “money masters”, quite artificially arrange large and small wars, revolutions, and sometimes major technological disasters. The expression “to some, war; to others, a mother’s joy” is most suitable to describe the profit that bankers receive from such mega-crises.

Thus, it can be stated that crises are man-made and the cause is bank profit (usurious interest). Moreover, the entire global capitalist system, which today is financial capitalism, is built in such a way as to ensure the regular receipt of this usurious interest by bankers in the maximum possible amount. The general headquarters is led by the US Federal Reserve, and the central banks of other countries, which regulate the activities of all commercial banks, are the main executors of the will of global usurers.