IT’S THE OILCONOMY, STUPID Part 2B: WEALTH, ECONOMICS, FINANCE, MONEY, DEBT and CURRENCY

IT'S THE OILCONOMY, STUPID

Part 2B: WEALTH, ECONOMICS, FINANCE, MONEY, DEBT and CURRENCY

By EAB

In part 2A we talked about what money is from the point of view of individuals and small businesses.

From the point of view of banks and governments, however, money is quite a different beast. Money is created and managed differently in different economic/political systems, with different results. Money can be an incentivising tool for the physical growth of a real material economy but can also be a vehicle for fraud and can also be weaponised.

Now we come to the dialectical part of dialectical materialism, the "face-off" between Capitalism and Socialism/Communism.

Simplistic propaganda from the Western LEMSO (Lying Establishment Media Sewer Outlets) conflates US-type Capitalism with democracy, freedom and material wealth, and conflates Soviet or Chinese type Socialism/Communism with autocracy, oppression and poverty. That may have appeared to be the case 50 years ago, but the reality of today's world could not be more different. The Western "neoliberal" economic/political system, like so many other AngloEuroZio Orwellian terms, is neither new nor liberal and has devolved into old-fashioned Fascistic Feudalism run by Kleptocracies, whereas Chinese socialism has evolved into grassroots Democracy at the base with Meritocracy at the top.

Finer details of such dialectical comparison are beyond the scope of this particular essay (although I have written two other separate essays about this, which hopefully will be included in this series).

Suffice to say that the most shocking, nauseating and counterintuitive “neoliberal” idea is the keystone unprincipled principle of Western Capitalist banking: that debt (on which compound interest is charged) is the equivalent of money. This originates from the fractional reserve banking system, which has devolved into the rehypothecation of collateral up to infinity. These fantastical financial shenanigans (= fraud) are firmly rooted in quicksand, ready to drag so-called Western civilisation under. This unprincipled principle has resulted in the vast proportion of money circulating in Western economies being debt-based, particularly the USA which is burdened by USD $37 trillion public debt which must be serviced by “paying” (= electronically printing) more than $1 trillion in interest payments per year to its creditors. That is before we even look at the $30 trillion or so “everything bubble” of the US share market and the even more spectacularly fraudulent ONE QUADRILLION USD of derivatives. The only way to describe this is a STEAMING STINKING MOUNTAIN OF BULLSHIT.

Such monumental fraud is not the case for materially productive net creditor countries, particularly China (also Russia), with its high savings culture, massive sovereign bank reserves based on earnings and savings historically accumulated, massive quantities of physical gold, massive warehouses of manufactured goods and an international trade surplus today of >$1 trillion per year.

How is money created these days?

According to Professor Michael Hudson:

In China, the publicly owned People's Bank of China issues or "prints" money, which is NOT based on debt, although it is fiat money, numbers in an electronic ledger. If such public money funds mega projects that fail, the loss is simply absorbed and wiped out by the government. Successful projects accrue earnings based on material productivity, which is debt free earned money. The fact that most of their projects have succeeded has resulted in their huge wealth accumulation today.

In the USA, the government Treasury issues debt securities (T bills, bonds, notes etc which are nothing more than interest payable IOUs created out of nothing). These are mostly bought by the Federal Reserve (a NON federal body that holds NO reserves, it is a consortium of private banks), using money created by the private banks out of nothing. This private bank issued money goes to the US government and is used to fund follies like the US MIC or other government expenditure (eg the salaries of public employees, which is money that then goes into general circulation). There is, upon maturity of these insecure "securities", interest owed to the Fed (=private bankers) by the US government. This interest “earned”, is money for nothing that is given free TO the private banks, BY (mostly) the Treasury = public purse = US taxpayers. This is how private US banks fleece US taxpayers.

W. Wilson, a Southern reactionary tyrant and rabid anti-socialist, has received an almost hagiographic treatment from establishment historians.

This, apart from the Petrodollar, is the SCAMMIEST SCAM IN THE HISTORY OF SCAMMERY and was concocted in a secret meeting in JP Morgan's lodge at Jekyll Island in 1910 attended by a bunch of bankers. In 1913, the Fed was signed into existence by Woodrow Wilson, the first 100% bought and paid for prostitute US President WORKING FOR THE BANKERS, not for the people.

Newest US financial scam in 2025:

When Trumpty Dumpty, the self described "stable genius" (=unstable moron) signed into being in July 2025 the "genius" (=moron) act which aims to convert US debt securities into "stable" (=unstable) cryptocoin, it heralded the end of the existing financial system and the beginning of USD hyperinflation which they intend to export to the world-at-large, which will facilitate the effective DEFAULT of the TRILLIONS of unpayable USD denominated debts.

India, Australia, Kenya and even Europe and are shifting to transactions in Yuan in response to the collapsing USD, and a Russian economic expert has EXPOSED this diabolical US cryptoscam.

The following commentator offers a more detailed outline regarding the "stable" coin scam, HOWEVER, be aware his platform is a pitch to sell Bitcoin, which is a Ponzi scheme backed up by NOTHING of material value.

In part 2C we will look at money as a weapon.

Footnotes:

- Here is commentary from Professor Richard Wolff about the difference between socialism and communism, a good reference resource.

- To learn more about how governments and especially banks treat debt as money in the neoliberal economic system (as well as possible alternatives), look up the books, essays and interviews by Ellen Brown, Professor Michael Hudson and David Graeber to name just three experts.