Responding to Steve Kurtz 2/14/09
Phil, What evidence do you have to claim that my well-being is dependent upon
me “multiplying other peoples obligations” to me? Steve
It’s mainly a kind of “generosity” and show of “trust” that becomes an onerous multiplying obligartion.
We typically all act to multiply the obligations others have to us for performing financial and resource exploitation around the world in two ways. You and I and everyone else buys products that are made by businesses that are given financing only if they return a profit.
It has to be a level of profit that assures their investors a rate of compounding returns, too, better than or equal to what is generally available. Secondly You and I and nearly everyone else, have money in the bank or in the markets earning compound interest, acting in to be the enforcer of the first process from the investor side of it.
It has no limit but for those so obligated breaking their trust and failing to be able to do so, as when the economy as a whole ceases to provide net returns.
We choose to receive compounding returns better than or equal to what is generally available, or we move our money elsewhere to get a better compounding return. With each choice we opt for using the surpluses of business to create real multiplying obligations for others to fulfill.
The choice first seems to be that of the borrower or bond issuer, but when you realize that no business is allowed to operate without giving investors good returns to use in compounding their returns, it becomes obvious it’s the investor’s choice. The investor makes two choices. One is to provide the credit, for others to use.
The other choice is to always multiply the credit provided by adding the % return to it, exponential mulitiplying the credit and business obligations for using it. The latter part is what causes the debt obligations to grow systemically until the system fails and the net surpluses are zero.
It’s a growth imperative with a certainty of failure, necessitating exponential growth for businesses to remain solvent and pushing them to make bets that end up necessarily failing. Any surplus anyone can find gets used to obligate others to generate increasing surpluses until that comes to the natural end.
So what first seemed like generosity in giving others the tools to make a good living becomes an indentured servitude obligating them to perform physically impossible deeds, all without seeming to lift a finger except to “be generous”.
NY NY www.synapse9.com