And now with the financialization of the economy, capitalism is eating its own, as these corporations are being hollowed out to feed the casino of Wall St.

The essential fallacy of capitalism is that money functions as a contract, but we treat it as a commodity. As a contract, with one side an asset and the other a debt, it makes a useful medium of exchange, but in order to save and store it as a commodity, equal amounts of debt have to be created.

Econ 101 tells us money is both medium of exchange and store of value, as well as price setting mechanism, but a medium is dynamic, while a store is static, so how does that work?

In the body, blood is the medium and fat is the store, or for cars, roads are the medium and parking lots are the store. Your hallway is a medium while the hall closet is a store. Mixing them up creates problems.

One way enormous amounts of excess currency is stored is for the government to borrow it up and spend in ways which don’t compete with the private sector and sometimes support it. Basically public debt is the basis for much private wealth. Where would that 20 trillion have gone otherwise? Buying Apple stock? Derivatives?

The reality is the functionality of money is its fungibility. As a medium, it is like that other medium of roads and so we own it like we own the section of road we are using. It is a public utility.

Instead, we are destroying society and the environment, in order to abstract all potential value out of them, to store as notational value in banks.

What if the government was to threaten to tax out what it currently borrows?

After people were done freaking out, they would start finding other ways to store wealth. Most people save for the same basic reasons; housing, healthcare, raising children, retirement, etc. If these could be invested in as community assets, than everyone trying to save for them individually, we would have stronger communities and healthier environments.

What will likely happen though, is that when we reach the end of this equivalent of a national home loan, those with the biggest piles of treasuries are going to trade them for the remaining public assets, not already privatized. Facilitated by those current bureaucrats who know who their future employers will be. Then the oligarchy won’t even try to hide.

Yet that too will be a stage, as their only tool of social control will be fear, not hope.