In the modern world, it seems that one is deemed to be rich by his assets but the properties are leveraged by debts. In other words, he is only as rich as much as he can pay the interest on his debt. Money begets money and the poor get poorer. The divide between the haves and the have nots becomes more apparent as the days go by. One small hiccup in this set-up and the house of cards comes down crumbling.
Nations that have secured high amounts of loans apparently have a higher credit rating on their credibility. Even our former premier was gung-ho in announcing that credit rating was so good that we can go on borrowing and borrowing; he did not talk about paying back!
That is what the world has come to. It is deeply intertwined in a web of debt. Money was initially utilised in change for goods, services and creativity when barter exchange proved problematic. It was working fine until international trade and imperialism came to the picture. Paper money used to be redeemable for gold, hence its value was the value placed by the people on the amount of gold it was backed with.
The British Colonial masters decided on the value of money as the King printed it, deciding on its inherent value. The American colonies started printing their own money, which irked the British and that eventually led to the American Revolution. The Boston Tea Party and American Independence were all about money and taxes.
One of the founding fathers of the USA, John Adams, said that there are two ways to conquer a nation. One is through the sword and the other is through debt. This second option seems to be the modus operandi of the Cabal these days. The unholy union of political leaders and bankers spells danger to the country but resistance is just futile. A socialist minded, people-centric troublemaker leader would just be replaced easily. There is enough wealth to satisfy the needs of the people but not its greed. There is always another person anytime ready to sell his soul to the hydra-headed monster.
Traditional economics suggest that the market forces will balance up the supply and demand conundrum. Modern economists, however, posit that the state needs to meddle to put things straight. In the post 1929-depression period, timely intervention by Roosevelt through infrastructure development and de-pegging of the dollar.
Conventional teaching tells us, from the experiences of Japanese Banana Notes, the post-WW1 Weimar Republic and Sokarno's Indonesia, that printing of money can bring about hyperinflation. There are instances too of countries who temporarily solved their monetary woes through this manner. It makes perfect sense for the state to print money for services. Instead of raising prices, it would increase productivity especially when employment opportunities are available.
The web of debt is made up of petrol, bonds, bankers and corrupt politicians. They create enticing Ponzi schemes to lure promising leaders of the rich nations to loans and investment plans. They would also rush to open up their currency markets to enable speculated manipulations. These countries, in time to come, would be strapped of cash. These same vultures will send their own agents via IMF and World Bank to further impoverish them with one-sided recovery packages to get the debtors to sink further into the quicksand of helplessness.
The author, through the 500 over pages of the book, highlights how the monetary mafia creates havoc in many countries around the world. She also discusses how many nations, including Dr Mahathir of Malaysia, have come up with ways to reduce the dependence on using US Dollars in international trade. One of the suggestions includes fixing currencies to particular 'basket of commodities'.
Word of appreciation to Prof Dr Ahamed Kameel Mydin Meera