Notes by O C Sure - How The [Corruption] Machine Works

Part I - [Blood Sucking] Productivity Growth

00:00 THE ECONOMY WORKS LIKE A SIMPLE MACHINE! [Aka, CORRUPTION EMBRACED]

00:57 THREE main forces that drive the economy: 1)Productivity Growth 2)Short Term Debt Cycle 3)Long Term Debt Cycle

01:18 TRANSACTIONS – The simplest part of the economy: Each transaction consists of a Buyer exchanging Money or Credit with a Seller for Goods, Services, or Financial Assets.
Credit spends just like money so by adding together the amount of Money spent and the amount of Credit spent you can know the Total Spending. The total amount of spending spent drives the economy. If you divide the amount spent by the Total Quantity sold you get the Price. That’s it. That’s a transaction! All cycles and all forces in an economy are driven by transactions. So, if we can understand transactions, we can understand the whole economy.

02:22 MARKET consists of all the Buyers and all the Sellers making transactions for the same thing. An Economy consists of all of its transactions in all of its markets. If you add up all Total Spending and the Total Quantity of things sold in all of the Markets, you have everything you know in understanding the economy. It’s that simple!

02:53 PEOPLE, Businesses, Banks, and Governments all engage in transactions in the way just described; exchanging Money and Credit for Goods, Services, and Financial Assets. The biggest buyer and seller is the Government consisting of two important parts; 1) a Central Government which collects Taxes and Spends Money and 2) a Central Bank which is different from other buyers and sellers because it controls the amount of Money and Credit in the Economy. It does this by influencing Interest Rates and Printing New Money. This is why the Central Bank is an important player in the flow of CREDIT. [The treasury issues the debt. The counterfeiters issue new currency that otherwise would not have existed if it were not for the underwriting of the special project. The new currency is received immediately by the insiders assigned to the project. The workers are taxed to pay down the debt. This laundering of counterfeit is washed clean by the taxpayers as the global oligarchy forms the culture in the image it desires. The poverty rates grow, the middle class shrinks, and the blood keeps spoiling, above and below. Corruption begets corruption.]

03:30 CREDIT is the most important part of the economy and probably the least understood. It’s most important because it is the biggest and most volatile part. Just like Buyers and Sellers go to the market to make transactions, so do Lenders and Borrowers. Lenders want to make their money into more money and borrowers want to buy something they can’t afford. Credit helps both lenders and borrowers get what they want. Borrowers promise to repay the amount they borrow, called principal, plus an additional amount, called interest. When interest rates are high there is less borrowing because it is expensive. When interest rates are low borrowing increases because it’s cheaper. When Borrowers promise to repay and Lenders believe them Credit is created. Any two people can agree to create credit out of thin air. That seems simple enough but Credit is tricky because it has different names. As soon as Credit is created it immediately turns into Debt. Debt is both and asset to the lender and a liability to the borrower. In the future, when the borrower repays the loan and the interest the asset and the liability disappear and the transaction is settled. [The out-of-thin-air is not credit. The contractual obligation specifies the amount of currency received by the borrower. Is it from existing money at the bank or is it conjured specifically because this contract was signed? The former is money, the latter counterfeit]

05:03 WHY is Credit so important? Because when the borrower receives the loan he is able to increase his spending and spending drives the economy. This is because one person spending is another person’s income. [As if there were not Newly Printed Money people would not spend money that already exists?] When you spend more someone else earns more [the every-man’s philanthropy!] [This is going to the velocity argument] When income rises it make lenders more willing to lend to them because, now, a credit worthy borrower has two things 1) the ability to pay and 2) collateral. This self reinforcing pattern of lending borrowing spending income borrowing lending is why we have CYCLES. [And rulers controlling the ruled by siphoning from their productivity and at the same time choosing which endeavors get done is a bit more humane than direct feudalism. The deception is almost comforting, but still no less corrupt].

Notes continued in the comments.

Full video from which this is an excerpt is here:
https://www.youtube.com/watch?v=PHe0bXAIuk0&t=146s