Kleptocracy and Sovereign Debt

We live in a period of great economic differences, there are countries we heard very little  about: these are the prosperous countries.

Do you know who rules in Switzerland or which is their political system?

We only hear about it when they talk about  the Swiss bank accounts that people have there. It is a peaceful country, without turbulences.

I was lucky enough to live there for a long period of time and I was impressed by these things I saw in Switzerland:

•     The hospitality of its people.
•     The ambience of peace and security.
•     Prosperity.

At noon when the owners closed their shops to go for lunch they left outside their products in the street, where they had been exposed, as they went to lunch quietly.

Of course no one stole anything, no need to steal, they didn’t even locked their cars.

Well, maybe things Geneva do not go that far, but it was mainly so. It was the first place where I could start to save money for the first time and the country is so stable that to live there gives you a sense of tranquility and constant safety.

Kleptocracy

There are other countries whose system of government is kleptocracy, that is, that politics and state finances are designed by and for thieves.

The the economic power, political and judicial powers must bow down to this kleptocracy.

Kleptocracy has created a system of total domination to his subjects: the sovereign debt.

What is the sovereign debt

When a country spends more than it earns it is in deficit, then borrows by issuing sovereign debt.
Sovereign debt is the promise that you will pay your debts with real money later.

A 10-year sovereign loan is a promise to pay the money at the end of 10 years.

In this system when central banks distribute "free" money  or below its price to the banking system to buy state debt, money ceases to be a common good to form and feed the kleptocratic class.

This began with the deregulation of the 80s, this paradigm is based on the idea that growth has to come from debt.

Deregulation

The background of deregulation comes down to this: it gives the banking and financial system in general the opportunity to take, for example, a unit of surplus wealth from production resources or from savers. This unit becomes its benefits to increase back their capital.

This increase multiplied by the leverage effect of debt by the bank, say up to 12 units, allows the creation of an additional credit over 12 times the original unit at the cost of the tax on the productive economy.

The source of the fund comes from the deviation of money as a common good, the possibility that the banking system can collect revenue from traders, workers and savers and returning it multiplied in the form of credit.

Deregulation has in itself the seeds of greed and insolvency.

Get out of debt

The first step to reach a real solution to this is to stop spending more than it comes in and stop basing the production of capital on this kind of "artificial" money.

Another main step to find a real solution is to make laws that control these unethical practices and to make productivity come from real creativity and not limit it by the dominance of the central banks that are so fond of certain politicians.

If I wanted to explain all this is to encourage you to work for your own future acting from the present now and working for your prosperity.

Save money and if you want to buy something make it a saving project until you have the money to pay it in cash.

Do you see what sovereign debt is? A complete nonsense!

But you are smarter and finer than all that and instead of paying high interest rates and work for others, work only for yourself, your family and those who love you.