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A Profile of Collapse

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Blog Talk Radio Thank You. I appreciate it. Good to have a sip of this water I assume is still safe to drink in New York huh? No!! Actually... I've got to be fair with you. I'm only setting you up a little bit. Its just that I love to hear the answer to that question. I ask that question everywhere I go. Everywhere I go I say, "how is the water"? Everywhere I go I say "How is the water"? I haven't gotten a positive answer yet. Not one! Last year I was in forty states and a hundred cities. Not one audience was able to say to me "Yes enjoy some of our fine local water"! It is pure! It is good! But nobody trusts the local water supply. Nobody! It means the system is beginning to collapse and everything is slowly breaking down. You see I'm an entropy fan. I'm an entropy fan. When I first heard of entropy in high school science I was attracted to it immediately. When they told me that in nature all systems are breaking down I thought what a good thing. What a good thing. Perhaps I could make some small contribution to this area myself. And ofcourse its not just in nature. In this country. The whole social structure just beginning to collapse. Just beginning now to come apart at the edges and the seams. You watch. Good afternoon everybody. Welcome to the October 13 radio address lecture 3 "A Profile of Collapse". My name is Peter. I'm gonna talk at you for the next hour on the subject of social and economic collapse. Prophetic words from the late great George Carlin. His education was phenomenal in the way he chose to sneak in very very profoundly important observations about society and human behavior. It is something that I don't think any other comedian or social observer has come forward with since Carlin. Maybe Bill Hicks is the closest to come into play. And then you have Richard Pryor and Lenny Bruce but Carlin is in his own field. I always loved that routine and when I first saw it it didn't really strike me as profoundly as it strikes me today. Think about the very simple notion of what a society is. Its supposed to be this system that's there to support everyone. And water being one of the most important attributes of our existence. The fact that we've let it be degraded. Imagine telling somebody sixty to seventy years ago that they would be paying for drinking water in the future. And the cost of that water would be more than the cost of petroleum. I think that they would look at you like you were crazy. Ofcourse, needless to say water scarcity, water pollution leads to jobs for filtration, leads to industries to produce water. So the more scarcity and pollution there is the better it is for the economy eh. Wouldn't surprise me in the future if air pollution becomes so abundant that people will have to buy special oxygen machines to put into their homes. This is probably right around the corner as far as I'm concerned. They'll have to buy these machines and who knows maybe they'll have a whole line of gas masks that people can wear outside. Special gas masks with Pokemon on them. You know just a typical modern way. You know what? Shit! Let's just pollute everything for the sake of economic survival. Let's give everyone Cancer and let's make sure there are as many diseases out there as possible. More vaccines to be generated. More medical establishments. More products to go along with the treatment of diseases. And finally you have this subculture of people in wheel chairs hooked up to chemotherapy machines with their Pokemon gas masks on waiving through Walmart so they can buy their new plasma television and playstation so they can watch "Are You Hot" on Fox the next night. Excuse me. The point is this. There is no value orientation to making money. And there never ever will be. The more problems there are, the more profit can be generated. So you can do the math intuitively about the general disposition for the welfare of society when its known deep down that the more conflict, problems, pollution, and scarcity there is the more money there is to be made and the more jobs there are to be created. This point will be brought up in the discussion even more specifically as we continue forward. But I want to present now the organization of this lecture. I have essentially broken this subject up into four dominant points. The first point is the monetary expansion policy that is global which is essentially a pyramid scheme. The second point is the basic market psychology and the mechanics of the market system itself and the infinite growth paradigm. The third point is the advent of technology and this phenomenon we have come to know as technological unemployment. And the fourth point is essentially a combination of monetary expansion policy and market psychology which is manifested what we know as Wall Street. The Wall Street derivatives market implosion with leverage. The bubble attributes of the system. The booms and busts. The nature of them and how they have unfolded in practice and in theory. And those four points added together I'm going to proceed to talk about government collapse, corporate collapse, and ecological collapse. The final collapse, ecological collapse, ofcourse being the true nail in the coffin. Everything else is basically a fiction. Its elaborate stuff that we've just invented to navigate society and has no real relationship to anything. Governments aren't real, Wall Street isn't real, the monetary system isn't real. The market system psychology is just an invention. So what we have really at the core of this problem is the ecological collapse, the finite resources, the pollution, and many other attributes associated. Okay the first think we should probably do is define social collapse. What is collapse? Collapse cannot be just a singular event. While there can be pockets of qoute, "collapse", in certain sectors or divisions of society if you will. Its really a process. Social collapse is when the system itself unfolds in a manner to break down the well being of society and its constituents. Or to put it another way when all the indicators of social health are in some form of negative decline. Meaning their no longer in a positive nature or steady state nature. Their actually moving in a negative pattern which will have negative repercussions for the species. So the next thing to consider would naturally be the measures of societal or social health. I'm gonna use the term societal health as an all encompassing definition here. There will be three attributes of societal health that you can measure. There would be your personal integrity which means your ability to get nutrition, clean water, your basic health functions which include your immune systems ability to fight cancer and all the environmental conditions that enable that. Your mental health. The ability to not have personality disorders, attention deficit, and many things that are in fact triggered by the environment. Stress relationships. High stress dispositions of course can have very negative consequences to your health both mentally and physiologically. This would be the personal integrity. And obviously you can't have personal integrity without having social integrity. So they are connected. I define social integrity as getting a job in this system. Having a lack of conflict. Establishing trust. There being little poverty in the system. There being less of an income gap and stratification which has proven to be very negative to social health. Wars, obviously, are a big problem. The more wars there are the more negative it is for the social integrity. And then underneath all of these notions is the ecological integrity which are the resources that govern everything that we have. The energy sources. The ability to produce food and arable land. And then on the other side you have pollution and all the negative retroactions that we've created. And the ecological integrity is naturally a very very important part of the social integrity. And the social integrity is a very very important part of the personal integrity. And this brings us back to this measure that I'm defining as simply societal health. So I hope everyone followed that. Now with regard to personal integrity those that haven't seen the lecture "Social Pathology" where I run through Richard Wilkinson's work about income inequality which is growing across the world and the stress relationships, the psychosocial ramifications consequences of that inequality. I suggest you go back and review that. Generally speaking and I'm not gonna make a huge treatment on this but the personal integrity which I just defined which I just defined as say Cancer rates and mental health, you will find that first of all when it comes to mental health, psychiatric disorders across the board are rising. Antidepressant usage has increased substantially over the course of the past few decades. Now you can argue that there's hype through drug companies to get people to take them and that's fair enough but overall if you look at all psychiatric disorders they tend to be increasing especially in the western more stressful highly stratifies areas. Mood disorders, depression, anxiety disorders like obsessive compulsive disorder, personality disorders like antisocial, and of course suicides. Suicides have virtually doubled within the past sixty years. I believe according to the WHO 10 suicide deaths per 100,000 in the 1950's. And by the mid 1990's it was 18 per 100,000. And you can imagine what it is today given the stress relationship to such a phenomenon. All of these things are related to stress. Stress is the defining attribute. And where does stress typically come from? It comes from social pressures. It comes from job stresses. Remember the girl that committed suicide because she had her job application rejected 200 times from various businesses. And she wrote a suicide note to her family saying that her value was less because she couldn't get a job. This stuff is very very relevant. I'm not going to go into a big treatment on that but the personal integrity of the individual is definitely a risk. And the other extreme is Cancer of course. The physiological integrity of the individual. Obviously Cancer isn't the only indicator of physiological health. But its a great general point to bring up because its such an epidemic now. And for obvious reasons that are related to the environment. The WHO(World Health Organization) predicts that 21 million annual cancer cases will be diagnosed by 2030. That's more than 13 million deaths from cancer around the world by 2030. In 2008 there was only 7.6 million. So what we are seeing is essentially is a doubling of cancer deaths and cases diagnosed within 20 years. This is insane. So the point here and I'm not going to go into an extended treatment is that the personal integrity of the individual is in very poor shape. Very poor shape. And this brings us to the social integrity which of course is what creates our personal integrity. The lowest common denominator of social integrity in the global market system that we all share is of course employment. So how is employment doing across the world? First of all its very difficult to measure this accurately given the statistics that are provided by the United Nations and the countries without going to the core of the statistical evaluation to figure out what they are actually measuring. Just specific unemployment doesn't give a full picture. You have under employment. You have people that are no longer on the books in their country for employment. These measures compiled together paint a very very different picture than what you see. But I'm gonna give you the standard numbers and I want you to understand that these standard numbers are going to be much much worse. The international labor organization the ILO as of October 1 of this year puts global unemployment at about 213 million. Now you can make what you want of this number as far as the validity of it. Thats for another conversation. Its the trend that's really going to give everything away. In 2007 there was 178 million unemployed and now in 2009, 2010 there's 213 million. So its a fairly substantial percentage increase that's happened. Of course it relates to the global financial crisis. But there is something much more profound going on here which I will talk about when I get to the issues of technological unemployment at a later point. Let it just simply be understood that over the course of the past 10 years overall as a trend percentage unemployment has increased. And what really gives this away is in fact the global poverty numbers that have also increased which I will go over next. According to the World Bank, 1.4 billion people live on less than $1.25 a day. That is the accepted extreme poverty line. $1.25 a day. Now generally speaking people say oh well poverty line 1.4 billion. I guess that's not that bad. Right? Well let's go to $2.00 a day. How many people live on less than $2.00 a day? That would be 2.5 billion people living on less than $2.00 a day. Now jumping ahead here about 5.5 billion people or 80% of the worlds population lives on less than $10.00 a day. I would like everybody listening to put themselves in those shoes for a moment. We're not talking about $10.00 for food or $10.00 for utilities or $10.00 for housing. We're talking total. Now if you look at the trends associated with these things what you tend to find is that at the very lowest level of extreme poverty things have actually gotten better. But all they've done is increase higher level forms of poverty which is the way I will define it. Anyone living on less than $2.00 a day, $2.50 a day, $3.00 a day, it doesn't matter where you are, you are in extreme poverty. I would any American to fly to Somalia, one of the poorest countries on the planet, with the intent to spend less than $3.00 a day on your rent, on your food, and I'd like to see how far you actually get. The so called progress in the war against poverty has been a complete illusion. It has raised the standard of living but only to a level that is still equally as absurd as the extreme rates they were prior. In fact and I apologize for the tangent I'm gonna bring this to the level of the United States for a second. In the United States the same fraudulent statistical model of this poverty line that's assumed is in full force as well. You have hedge fund managers bringing home 200 or 300 million dollars a year while the poverty line in the United States for a 3 person family husband, wife, and a son or daughter is, guess what, in the 48 contiguous states $18,310. I would like anyone out there in the United States to try and live on less than $20,000 a year with 3 people in your family. Let's see that happen. I would like to see that. Obviously its being done. But just imagine the state of deprivation that it generates. In fact I did a very quick calculation to see how this would play out. The average rent, according to a 2003 census, was about $684 per month. Sorry for the outdated data. I'm sure it's higher now. But okay $684 per month for the average rent or mortgage. So that's $8208 a year. Now lets take into account energy costs. $0.15 per kilowatt hour with an average usage in 2008 of 928 kilowatt hours a month brings it to $1656 a year. So that brings our total spending power after rent and electricity to $8446. And divide that rate by each person in the household which is 3. So you have $2815 which equates to $7.71 a day to spend on food and transportation and health insurance. Health insurance, of course, is thrown right out of the window in an equation like this. No one making $20,000 a year, unless they have a good job, is going to be having health insurance out of pocket that's for sure. So $7.71 a day. I guess if you are eating McDonald's happy meals every meal of the day you might be okay. And of course this doesn't even take into account all the general problems associated with living. Any type of health problem. Any type of transport problem. I'll just stop there. Oh and I'm sorry 14% of the American population now exists under this so called poverty line which is completely absurd. Okay so I've gone over the labor issue and the poverty issue with regard to the social integrity category we denoted for societal health. There are other issues to talk about which I'm not going to go into such as the income gap and all the side effects of that as I mentioned prior. The fact that all the military establishments on this planet are currently arming themselves to the teeth. If you think its a good measure of societal health to have everyone selling armaments to each other creating new machinery. The military now trying to use robotics to automate and remove humans from the actual fighting. If you want to see social distortion, just wait until the United States conducts a war without people actually fighting. And one final note is that social instability across this planet has continued to increase. Whether its general crime. Whether its the western prison population which ofcourse have many different variables to it which is largely structural violence but thats for another converation. But overall you have general social instability occuring across this planet. I'm gonna come back to the reasons why I'm discussing all this before I go into the next section. But for the final point of this section regarding societal health lets talk about the ecological integrity or lack thereof of the current environment and the trends that it is foreshadowing. Now I'm not going to go into too many specifics to this because I am going to bring it up in the next section but let it be known that the ecological integrity of just about everything on this planet is in a state of crisis. From water resources going to scarce to the loss of arable land with no initiative made to move beyond the use of arable land. In other words there are other solutions that can be oriented. To resource depletion in general to the decline of fish in the oceans to the lack of interest to move into renewable energies in a systems approach to get rid of oil and fossil fuels which is not only damaging but will eventually run out. Species extinction spasms. Grand amounts of pollution coming from all sides of the waste production. The accumulation from the production processes and the disposal processes are absolutely incredible. Perhaps if you saw the Russia Today news report on Moscow and how Moscow is being engulfed in garbage because they take the garbage and they just make big hills out of it. So ecological integrity is at risk in a very very grand way. Now again I'm gonna go through all this more so in a second because the ecological collapse attribute is very very critical to understand. But I want to point out the reasoning for this setup. The issues of societal health I've just gone through, the personal integrity issues of cancer, health, mental illness, stress relationships, the social integrity issues, jobs, conflict, poverty, income gaps, propensities for war, and the ecological integrity issues resources management, pollution, energy. Everyone of these attributes has a negative trend for the future. None of it is going to get any better. The poverty is not going to get any better. The energy issue is not going to get any better. We are on a downward slippery slope which will be capitulated by the mechanisms I'm about to describe. Which if left unabated will comprise the end of the collapse sequence if you will of the socioeconomic system that we understand. I will say as an opener that the monetary system and the market mentality will be what destroys and kills everything on this planet. It isn't some group or human being. It is a value system cancer that has been set in motion that people blinker out everything that might interfere with it. And this processes that I'm about to describe, the attributes there in, is the problem of the world society. And nothing is going to change any of these attributes in the long run until the entire system is overhauled. Okay coming back to my 4 points. First point was monetary expansion policy. The second point was market psychology and the infinite growth paradigm. The third point I've stated before was technological unemployment and the issue of labor. I'm gonna switch that around now with the Wall Street derivative phenomenon because that relates more contextually to the prior 2 points. Alright. Monetary expansion policy. This comes down to the very fundamental process of how money is created in the monetary system. And this system is used throughout the entire planet virtually without exception. Money is first created out of debt. That debt is very real just like the debt any of us have on credit cards or anything else. Money is monetized debt. This comes in essentially 2 forms though there is probably more. The first stage which deals with the central banks of the world. They monetize treasury securities or bonds. They can monetize different forms of bonds even from other countries. The second level is credit we know as credit in the general notion of loans from private banks. So if you want to get a loan out for your home, you are monetizing the debt that they give you. So the contract is essentially monetized if you will. Your contract that you sign to repay invents the money that they give you for your loan to buy your home or your car or anything else. So subpoint 1: Money is created out of debt. And then they charge interest on this debt. Subpoint 2: The interest does not exist in the money supply. In other words if I have $1,000 and I loan it to you at 10% interest, that means you have to pay back to me $1,100. Let's assume for a moment that the 2 of us are the only people in the economy ( I know its a very abstract example) but how are you going to pay back $1,100 when there is only $1,000 in the entire pool of money? This is what the interest phenomenon creates. So everytime money is loaned out from debt, at interest, it creates more debt that doesn't even exist in the total money supply of any country or even, holistically, in the world when you put the math together. Subpoint 3. Every time money is deposited into any account across the world, this think called the fractional reserve system of money accounting kicks in. What this means is that the bank can make money on top of the money that you've deposited roughly in the equation ratio of 9 to 1. So you deposited $1,000. They can make $900 on top of that. They can now loan out $1,900 to anyone who wants to take that loan. Thats why they call it fractional reserve banking. A myth about this is that they actually loan out money that they get. No they don't loan out money that they get. They based their loans upon the money that they get through deposit. Subpoint 4 is an extension of subpoint 3 as far as the fractional reserve system. And what this simply is is an observation that every single time anyone deposits money in any bank, whether they are central or private, the bank is able to repeat that process. And what this equates to (I don't want to go through the whole equation) is that for every deposit that occurs in the banking system approximately 9 times that amount can be created, in theory, out of thin air on top of it. So if I deposit 1 million into a bank account through the series of this deposit and loan cycle, 90 million dollars can be created. Now for those that are paying attention, what I have just described is a pyramid scheme if you have ever heard of such a thing. A pyramid scheme is where money is put into the system to feed the necessity to pay out money at the top. But the money can't be paid out of the top unless it constantly comes in from the bottom. And this is exactly what this system is. Because of the use of interest, there is always more outstanding debt in the system than actually exists. And the monetary creation phenomenon of the fractional reserve system only compounds this and makes it worse. All you have to do is take a look at the amount of money that the United States, for example, has created over the course of the past 100 years and all you see is a nearly parabolic amount of money shooting into infinity. In fact the federal reserve stopped reporting M3 because they didn't want people to know how much money they were creating because of the psychological association to inflation. And this is a very important point. We'll call this subpoints 5 and 6 which would be inflation which if you go through history everything has been inflated through the monetary system. I mean how cheap was bread say 20, 30 years ago compared to what it is today. Vey easy to measure. And then debt. Subpoint 6. Debt has increased almost in lock step with the increase of the money supply in America. And why? This would make perfect sense because money is created out of debt. You cannot have a system where money is created out of debt and expect anyone to ever be free of the ramifications of debt and the only thing that can possibly happen in a system like this is complete and utter failure and collapse. Nothing can grow forever. Even the money supply because the end result is always the same. 2 results: Debt collapse and inflation or hyperinflation. Inflation has been stifled right now in our system for many reasons I won't go into. But debt collapse is what is currently happening across the world in part because of this monetary expansion system. Something that no one is willing to face. You dont't hear any news casters talking about. I wonder if even the president of the United States even knows what the fractional reserve system is. Now people often say "well how is this possible"? "How could there possibly be a system like this"? Well the attempts have been to regulate it through many different processes of monetary expansion and contraction which while never stopping the expansion overall does temporal things to make the illusion work. Central banks are there as the lender of last resort to try and deter failure or to step in anytime failure or liquidity problems emerge within the banking system. Thats the job. And because of this policy, even the federal reserve and the central banks themselves can fail as well so they have the World Bank. So they had to create another lender of last resort. The World Bank. Its all a big cosmic game and a big delusion. None of these organizations have any actual wealth of any kind. There's nothing to define wealth. They just simply print money and they operate with the same basic principles. And they work in the hierarchy to give the illusion that there's some type of empirical power and that this money and wealth actually exists somewhere when it doesn't. Its just bookkeeping entries. So "why has the collapse materialized where it is now"? is another good question. Fundamental market theory denotes booms and busts. All a boom is, all it is (it has nothing to do with production, has nothing to do with sales) all a boom is in the boom and bust cycle is the insertion of more money thats being utilized. All a bust is is the contraction of money which usually happens from there being a overload of money within the system which creates debt collapse or when inflation becomes a foreshadowed problem. So they have to pull back monetary expansion, increase the interest rates so they can curtail the possibility of inflation in the short term. Ofcourse, because if you look at the historical record again, inflation is still constant which makes sense. However its not economically comfortable for there to be recessions. The political officials don't want it. They want to see progress to make their institution look like they're actually doing something positive. So the market system has not been allowed to play out in its real boom and bust phenomenon. So what they've done is they've done money injections everytime there's a recession. Virtually everytime. And these money injections create a false or a truncated bust which does not actually correct the inflationary properties, the expansion properties of the initial money creation that created the boom. So what you have if you can envision a pyramid is this boom and bust cycle that's riding up the pyramid and its been riding up for a long time where they keep truncating, if you will, the busts which were never allowed to fully correct. And what we are is at that top of this pyramid where it says okay this can't work anymore. How much more debt can we go into? 14...15...16 trillion dollars of American debt? How about 40 trillion dollars worth of American debt? There becomes a point of saturation where the debt creation, meaning the monetary creation cannot handle the inflationary ramifications not to mention the debt responsibilities that are spread throughout the society and hence systemic collapse of the entire monetary expansion sequence has to occur. It has to. Its a mathematical inevitability. And thats where we are now. Now please understand something. There is now balanced element here. There is no way to make a steady state fractional reserve lending policy and monetary system. Its literally impossible based on the way the system is constructed. Even with the most optimized form of regulation and care given to the booms and busts, meaning not truncating the busts, you would still have inflation and you would still have debt and invariably and inevitably you would still have collapses from them. And one of the reasons of that inevitability, again, is because of the interest charged for each one of those loans which does not exist outright in the money supply. Failure is inevitable. Its a pyramid scheme. So what you have now is entire world based on monetary expansion practices that simultaneously create debt. More debt than they actually create money in fact and the world you see around you is the result. You have every single country facing extreme debt collapse because of their own financial policies. Everyone's borrowing money from each other through bond sales making more money out of nothing, loaning it at interest to the public and other countries. And all it can possibly to..all it can possibly do is lead to more failure and more collape. There idea that you're gonna try and solve debt and monetary problems by making more money out of debt again to solve anything is the most hilarious thing I've ever heard of. Its like throwing oil on a fire thinking its water. Its just going to make it worse. That understood, now let's bring it down to the actual market psychology the actual dynamics of what we call a market itself. This buying and selling, the use of labor, and understand how this process and this mentality if you will is furthering and compounding the collapse as we see it and will continue to do so. The entire market system as I've discussed before is based on cyclical consumption. Its based on the assumption that infinite amounts of consumer and money circulation will continue. The money moves from the consumer to the producer which divides it up to the laborers which make the goods which the laborers get wealth from and then become the consumer along with the producer and you have this cycle going on and on and on of consumption. The first thing to consider with this is that the monetary expansion policy I just described creates a game of musical chairs where debt collapse and bankruptcy is inevitable. And the businesses know this. So they're exasperated a little bit more because they have often more debt requirements than the system really should require but they're always a little bit against the wall. Keep that in mind. Its a pressure of the system to be more cut throat than they typically would be if the fractional reserve lending policy and interest attributes were not in existence. So that is a particular point of pressure to keep in mind. The second point builds upon that with the fact that waste and exploitation and pollution are built right in to the modus operandi of seeking profit and maintaining a competative edge. Maintaining the competative edge and creating market share transcends all environmental concerns transcends all social concerns. As I eluded to prior, to have air pollution is actually profitable for a certain industry so they can make products to service that air pollution. To have water pollution equally as well. You have whole industries now devoted to making bottled water for people to buy at rates more expensive than oil. So the more problems there are, the more that can be made. And whether any particular business men will ever admit this it is irrelevant because its built into their psychology. Waste, exploitation, pollution, and the ability to profit off of anything and everything is the overriding market psychology which will lead to systemic collapse oriented problems in one direction or another. We live on a planet of finite resources where resource preservation, hence the term economical, hence the definition of economics, should be employed. Resource preservation should be the driving factor of all industry. It isn't. It's exploitation, waste, pollution, and capitalizing on anything possible. Even if you're capitalizing on problems which you should resolve as opposed to making money off of servicing. In other words, it is more profitable to service things than to actually fix them including the environment. So to summarize how this relates to collapse, you have on one hand a psychology that basically doesn't give a shit and on the other side you have the need to constantly create and consume and waste resources, planned obsolescence, no efficiency built into anything, no need for longevity because you want to constantly service. You want people to constantly buy things. The very strategy of marketing today is based upon planned obsolescence deliberately. Its right there for everyone to see. And this will lead to both economic collapse and in many ways civil unrest through exploitation practices that you see in the slave labor camps and everything else in the third world. So I'm gonna leave it at that as far as the issue of market mentality and move on and extend this point in fact to the third point which is Wall Street. One of my favorite subjects. If you haven't seen the "New Wall Street" that was made by Oliver Stone, I do recommend it. It has a lot of great underlying themes including abundance versus scarcity. Renewable energies versus fossil fuels. The fact that you can profit off of scarcity as opposed to abundance. It also showed within the film as an example granted that its not making any speculation, but denoted that there was a financial institution that profited off of the collapse of the credit default swap derivatives market which triggered in 2008 to the collapse of the entire financial system. And how groups were shorting that knowing that it was going to happen and you can rest assure this actually did happen in reality. The individuals that are privy to these understandings behind the curtain know exactly what's coming with a long enough period of time to foreshadow it And this brings me to my first point regarding Wall Street. And that is the fact that you make money on the way up and you make money on the way down. People can profit off of the collapse of third world economies in this system. People profit off of the collapse of anything. People make money off of the rise of precious resources that the more they speculate upon it such as oil the more that it will injure the world. Such as in 2008 the big oil burst that happened which was shutting down schools in certain regions of America because they couldn't afford to pay their gas bills whether it was the school bus or things to heat the establishment. Yet people make money off of it. They don't see that. They don't see the ramifications of that. Wall Street is a very unique invention. Its an extension of the market system. Its buying and selling except its gambling specifically because its not actually buying and selling anything real. Atleast in the form of derivatives. And I will debate people whether a true investment even exists at all in the trading mechanism because it really doesn't. Once things go IPO fine. Yea money has been invested but once the shares are out there, its just trading hands it doesn't do anything to the company really except create this false barometer of value as its traded up with the speculative aspects that they can base things on but it still isn't real. It still isn't real whatsoever. So the first point I want to make about Wall Street then is the fact that it is without any type of social concern whatsoever. You make money on the way up and you make money on the way down. Its that simple. And the failure of society as we know it will be accompanied by a select few who make an outrageous fortune during that time just like they did in the 1929 crash. Just like they did in the market crash of 2000 when the bubble burst of the dot- coms. Just like they did even on the decline of oil those who were able to turn the tables fast enough who knew what they were doing. Knowing how exasperated these speculative driven bubble was to begin with. So the decline of anything is profitable from the standpoint of Wall Street. And that in and of itself is a completely psychological value cancer that is completely unacceptable to any type of society that wants to have progress and balance and sustainability and long term survival. The second point to make about Wall Street is the vey dynamics of the game itself and the games it has invented. The first point to bring up with regard to collapse ofcourse is the derivatives market which I think everyone here must be familiar with by now. There are about a quadrillion dollars of outstanding derivatives in existance. Which I believe the GDP of all the countries on the planet is only about 60 trillion dollars. So a quadrillion dollars vs. 60 trillion dollars. Hmmm...There's something wrong with that equation isn't there. For those that aren't familiar, derivatives are just financial instruments that have no actual value but derive their value evidently from something else. Then what they are are just gambling bets. They're nothing more than inventions that people trade. And the reason that that market became so inflated was because of the heavy use of margin. The incredibly heavy use of margin pyramiding these investments over and over and over again. In certain instances you can have 50:100 to 200:1 margin in instances. That means for every dollar you put up, some fantasy bank puts up $200 on top of that $1. That's just insane. And its easy to see how such outrageous amounts of value could be created up to a quadrillion dollars. The irresponsibility of this is so profoundly incredible because that money has to be real. That money has to exist at some point to pay back everyone that requires money to be paid back including the banks that loaned out the money to begin with. So ofcourse if there's a problem and there's a substantial loss anywhere in this chain of causality, suddenly everything gets triggered and you have this outrageous amount of money owed to all these other people that cannot be paid back and hence the domino effect begins. I'm sure by now everybody's familiar with the housing market collapse. I'm not going to go into the full chain of causality but there's something called a credit default swap which is sort of an insurance policy which is a derivative and very largely traded derivative used in a few different mediums which was one of those chains of causality that led to the need for massive bail outs of the economic system and institutions like Bear Stearns. Now I don't want to belabor this but the point is very simple. The derivatives market bubble as it exists hasn't even come close to collapsing in the way that it likely will fairly soon. The housing market is not done collapsing with all of its mortgage backed securities and collateral debt obligations and credit default swaps interlinked as well. There is an outstanding time bomb waiting to burst within the global derivatives market. All it takes is the right combination of defaults and failures to meet responsibilities for payment. And when you remember that the groups behind these trades are not just individuals. They're massive institutions that stretch tentacles into almost every major industry, then you begin to see the crisis that has emerged from the entire Wall Street phenomenon both intrinsically in and of itself and the use of these gambling derivatives that should have been outlawed years ago. But even if they were outlawed it only would loosen the pressure of the problems that's generated by Wall Street in and of itself. The final thing I want to talk about with regard to Wall Street is the phenomenon of bubbles in the investment community. From the tulip mania many centuries ago in Holland where people were trading tulips up to outrageous prices based on no intrinsic value whatsoever. You can't eat a tulip. It will eventually decay. Yet they were going for the price of homes. You have these bubbles that continually occur in society. Jumping ahead, you had the dot-com bubble and investment speculation. Everything constantly going up which we know can never continue. Then we have the housing bubble ofcourse we see where that's at today. And the next bubble is hard to find. I believe its partially the derivatives bubble but its a little loose right now because of the pressure on the system overall. Perhaps I'm not up to speed on where the bubble is at the moment but I want to point something out and that's the correlation of monetary expansion policy to bubbles. When money is created in surplus such as the federal reserve after 9/11 lowering interest rates to 1% and suddenly all the banks jump in and take tons and tons of loans and then pile on leverage. Do their investment attributes. This money tends to go into isolated sectors and it just happens to gravitate in certain sectors and creates bubbles. It is one of those characteristics of the system that is only problematic and its again a reminder of the fact that we need to be in a steady state economy and get away from all this bull shit where these absolutely bizarre ebbs and flows and they create aspirations and illusions and they invariably just collapse and they injure everyone except the select few that are on the inside. The 0.001% that can make the money at all times after these collapses. Not the public. The public always loses. The public will continue to lose. Wall Street is not designed for the public to gain anything except with the very subtle mutual funds which as you will begin to see very soon as more liquidity gets put into the system and inflation increases the market will begin to tip. The only reason the market and the United States has maintained the averages that it does is because of the perpetual liquidity being injected into the system which naturally goes into the market system. And back to my point creating bubbles. That's what it does. So bubbles are extremely destructive is my point. I've jumped around a little bit on this but Wall Street is a time bomb. Its an atrocious idea. Its an extension of market psychology. Its an extension of what we call the free market. The free market is Wall Street. If anyone tells you otherwise then they are not paying attention to the central mechanisms of what the free market represents. And I want to add as an aside that the only way you can save the free market is by periodic intervention of socialism. The free market invariably goes beyond the point of no return and it will continue to do so over and over again whether its dealing with Wall Street. Whether its dealing with companies that just need to make more and more loans and eventually go bankrupt and have large enough businesses that can't fail. So they have to be bailed out by the United States. Whatever that even means. All that means is that they sweep it under the carpet. The United States doesn't have any money. I hope the illusion becomes clear and I'm gonna have to leave it at that for now. And this brings me to point 4 of this second section if I remember correctly. And that has to do with labor and technological unemployment. This will be a little be a little bit of a geat shift from the prior subjects but actually it goes back to the second point which has to do with the market system and cyclical consumption. The need for cheap labor. As with anything you want to have cheap initial input resources that you can utilize to resale at a competitive price and make as much money as you can. Obviously labor should be as cheap as you possibly can get it to be. That is a natural mechanism of the market system. That is why we use slave labor in the 3rd world and that is why mechanization, the use of machines to replace human labor, is growing rapidly across the world as well especially in the west. The issue of technological unemployment has been a debate for many many years and of all the books that I have read on it the general economic conclusion tends to be very short sited though probably accurate for the time period and that is that there is displaced labor but eventually that labor manifests new skills and its reemployed somewhere else. What's happening now is very different. What's happening now is that the rapid increase of mechanization and technological capacity and computerization. The rapid increase of technology is outpacing any form of relocation of labor. And this is becoming common understanding now. In an L.A. times article of October 4 called "Automation is Increasingly Reducing U.S. Workforces", it details exactly what the Zeitgeist Movement and The Venus Project and Jacque Fresco and even the technocrats have dicussed for years and years and years. And that is the reality that technological innovation is becoming too cheap. It will continue to become too cheap and too efficient. No need for vacations, insurance, healthcare, and hence humans will continue to be offset by mechanization. There's a quote in this aforementioned article by Allen Sinai, the Chief Global Economist at Decision Economics in Boston and it states outright, "If cheap technology is available, you substitute technology for people". Well that's true. And that's fundamentally a principle of the market system. And what you have here is what some economists have called the "Contradiction of Capitalism". And this is a staple of the failure of this system. The failure of the market system. The failure of the idea of competition and labor for income and everything else. A failure of the intrinsic mechanisms of the so called free market, labor market system is occuring right now because of the technological innovation of machines. In fact I want to quickly just read a little bit more of this article if you don't mind because there's certain statements that just ring so beautifully true with everything that we've been talking about. It says "Crisis is a catalyst for change. With their businesses hammered by 9/11 airlines cut labor costs by switching to computer kiosks to check in customers said Greg Buzek President of Retail Technology Consulting Firm IHL Group. Other industries such as restaurants and retail stores are speeding adoption of these machines. About 300 billion worth of transactions move through such kiosks in 2006. That figure is expected to be $455 billion this year and $700 billion by 2014 Buzek said. EMN8, a San Diego company that provides self service kiosks to restaurants including Jack in the Box has seen a "dramatic increase" in interest from fast food venders in the last 8 months said Brent Christianson, vice president of sales at EMN8. The company leases the machines to restaurants, saving them big upfront costs. It says at the end "It is being driven by the opportunity to increase sales without adding labor or food costs," Christensen said. And its not going to stop. And the more the economic collapse occurs, the more mechanization will come into play. The clincher here which is going back to the contradiction of capitalism is that every human being that's displaced loses purchasing power therefore they cannot go and buy the goods being produced by the machines that replaced them. In other words you have all these machines making goods in abundance cheaply but yet you have a population that can't afford to buy anything because they have no jobs and therefore they have no money and no income. So boom! That phenomenon in and of itself presents a slow grinding halt to the system that we understand. And its gonna be very interesting to see how those dynamics play out. In my new film, I'm going to talk deliberately about the application of mechanization about whats possible today and ofcourse what's happening as well. There is still a moral issue if you will that's occuring in society where a lot of corporations are not mechanizing because they're still trying to keep the image that they support the labor force and that they're, you know, American and we're made in America and we have American workers or whatever. And I'm sorry to say though as the recession continues The Great Recession which will lead to complete Global Depression if it isn't already by whatever definition. Mechanization will continue and the romantic notions of human labor will not only be too expensive, it will be found that it's simply too productive to make goods without human labor. In fact that's the final point I want to make on this issue and that is the reality that the more we mechanize, the more productive it is. So it is socially irresponsible for us not to move into deliberate mechanization hence the removal of the entire labor and market system. Okay those are the 4 central attributes I wanted to talk about. Monetary expansion pyramid scheme which will collapse from its own weight intrinsically. The market psychology that doesn't give a damn and will exploit resources and challenge every aspect of decency in our society. The technological unemployment paradigm which will make this system void one way or another. And the accent known as the Wall Street phenomenon and the derivatives bubbles and everything else that simply add fuel to the monetary expansion policy which is ofcourse adding fuel to the global debt crisis. There was a new release by the S&P that I think by 2050, 60% of all countries will be defaulting on their economies. It will probably be a lot earlier than that in fact. I mean if you really pay attention to what is happening with all the countries in the world, everyone's broke. Everyone's already defaulted. What does it even mean to default? If you have every country in the world owing money to every other country in the world, "What the hell is that"? What is that? Its pure insanity and its only going to lead to more misery and destruction. As everyone tightens their belts for this fictional idea known as debt which doesn't even exist to begin with. The only solution that can happen and if I was at the U.N., I'd say "Listen guys we're gonna erase all public and government debt right now". "No one owes anybody anything and that's the end of that". Obviously if we did that, guess what, the exact same problem would happen because that's what this system creates. So you really can't just get out of it by erasing everything because the system is still there. You have to change the actual system. Okay. Really quickly because I'm running out of time. The other attribute of this is ecological collapse which is really what the true collapse is. Everything I've just mentioned is crap human beings have invented. And we've created this ridiculous paradigm where we actually think its real. We think money and debt's real. We have all these obligations to each other based on nothing but fantasy. I'm just gonna go through this really quickly because I'm running out of time. But water scarcity is approaching crisis levels in the third world. It is already actually and it will continue to do so in the western world. Energy resources. We have maybe 30 years before true energy panics arise on this planet. This doesn't mean we're running out of energy in a very literal way. It means that the psychology of understanding the decline of oil and hydrocarbon energy will have such an incredibly profound impact on the way the markets work, the price of oil. Going back to Wall Street. If you think you know $180 a barrel is bad, wait till its $200 or $300 a barrel and all demand is destroyed across the world because no one can afford it. This will happen in one extreme or another. You can count on it because that resource decline is inevitable one way or another. And overall we have general resource pollution. We have all sorts of deforestation problems. The fish are running out. We have the pollution of the fish. You know, anyone that wants to take a moment to look at what we're doing to this planet. Look at what we're doing to each other. It doesn't take much research to see that everything is in decline. Species spasms and everything else. It's also important to point out that mankind is now using our resources at an alarming rate. The establishment production methods we have, the wasteful practices we have, has now generated a ratio where we are now using 1.5 Earths every year as far as what is created by the Earth as reported by the Global Footprint Network. This is just profoundly scary when you put it into perspective. As a summation of this lecture the market system and the psychology present fueled by the monetary expansion policy and debt restrictions exhausted and exasperated by the making money on the way up and way down Wall Street mentality which is an extension of the free market psychology with the ticking time bomb of the derivatives bubble coupled with the government collapses and the ecological collapses therein is what will lead to not only the collapse of this system but if left unabated the fall of human civilization as we know it. And I'm out of time and I'll talk to everyone next week. Thank you. Transcription by Jim Scott.

Video Details

Duration: 1 hour, 2 minutes and 38 seconds
Country: Brazil
Language: English
Views: 104
Posted by: zeitgeistbrasil on Oct 14, 2010

Oct 13th:
A Profile of Collapse - Understanding the coming Ecocidal consequences of the Economic Money Sequence Cancer and how it will likely unfold within the social order.

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