"Twice-Lent Money" page 6
Who has these savings?
As the article above points out, corporations are sitting on mountains of savings that they won't invest in production because there's no demand. And there's no demand because the money is now locked up in corporate savings, thanks to offshoring the manufacturing work to cheap labor countries. These company execs must somehow expect the people they threw away at home to go further into debt forever to buy their output. Henry Ford must be rolling in his grave.
“The wage motive requires that the highest wages be paid,
for not otherwise will the cycle of purchasing power be started.” ~ Henry Ford
But it goes beyond the corporations and today's situation.
It's really about the design of the system.
Savings are Perpetual Debt.
The fundamental problem is the mathematical structure of money as a thing-in-itself in finite supply.
All that is required to create mathematically inevitable defaults and collapse is income disparity.
And Perpetual Debt has always been a dynamic within the money supply. In the past, gold coins accumulated in the hands of the economically powerful and only entered circulation as debt just as bank credit does today. Whole societies found themselves trapped in borrow from Peter to pay Paul and vice versa traps created by rich moneylenders. The same would happen to Bitcoin if it became the world's currency.
That is because its founding principle,
the fundamental concept of money as a thing-in-itself made valuable by its scarcity,
is the problem.
~ solution ~