Wednesday, May 15, 2013

phantom financial wealth, phantom carrying capacity and phantom democratic power...,

karlnorth | The Interdependence. Economic activity at phantom carrying capacity depletes resources at a rate that causes rising resource costs and decreasing profit margins in the production of real wealth. The investor class therefore turns increasingly to the production of credit as a source of profits. Credit unsupported by the production of real wealth is stealing from the future: it is phantom wealth. It also creates inflation, which is stealing from the purchasing power of income in the present. Protected from the masses by the illusion of democracy, government facilitates the unlimited production of credit and the continued overshoot of real carrying capacity. This causes inflation and permanently rising costs of raw materials. To divert public attention from the resultant declining living standard of the laboring classes, government dispenses rigged statistics and fake news of continued growth to project the illusion of economic health. The whole interdependent phantom stage of the capitalist system has an extremely limited life before it collapses into chaos.