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CONTRIBUTION · 8th December 2010
David Ealing
Consider this absurd scenario. You’re swimming in the ocean with a large group of people miles from any land and it looks like you’re all going to drown unless help arrives. Magically someone (we'll call him the banker) comes and offers everyone a life preserver. These life preservers come in 100 easily assembled pieces. The only catch is that at the end of each day all life preservers must be returned to the banker with an additional 5% of another life preserver. The banker has also agreed that you can instantly re-borrow all 100 pieces of your life preserver as long as you submit the additional 5%. As every life depends on these life preservers you all agree to this arrangement.

Now, since everyone knows they have to return an additional 5 pieces on top of their own 100 pieces they spend the day trying to wangle, borrow or steal the additional pieces from some other person. At the end of the day the banker returns and requests the return of his life preservers plus 5% of another one. Those who have managed to accumulate the additional pieces are thus able to rent another 100 pieces for another day. Because the others have not been able to return the total amount due to the life preserver banker he confiscates whatever they have left. These few are now left on their own and in time will surely drown.

As this scenario continues more and more people find themselves without support while fewer and fewer have the necessary support to ensure survival without struggle.

As stated above, this is an absurd situation. Because we can see the inevitable result of becoming indebted to this banker no one would agree to the conditions he offers. But this is exactly the conditions offered by the central banks throughout the world. Anytime more of something must be returned than was originally created a lack or a debt must be the result. The people of the world compete for the finite number of dollars in existence. The winners thrive and the losers starve.

And today in this wonderful world of abundance tens of thousands of human beings will starve to death so that the rest of us remain buoyant. It is time to stop this insane process.

David Ealing is a writer who focuses on the financial causes for the deaths of children. His website can be found HERE.

While the Left blames the Right and the Right blames the Left; the Banker smiles unseen. Watch a video that will introduce you to a new reality HERE.
It isn't that complicated
Comment by Helmut Giesbrecht on 8th December 2010
Every few years Stats. Can. publishes their findings on the distribution of wealth and the wealth accumulation of the higher income sector is increasing while the wealth of the lower end is in decline. This has been the case for decades. Now if that continues the outcome is clear.

Of course you can assume that a person on the bottom could over time become one of the "bankers" but what are the odds of that.

Consider who won on the sub prime mortgage scandal and who lost. Consider who wins when the BCUC says that PNG can increase the price of gas so they can sell less gas but still make the same profit. Consider who pays more when the city gives West Fraser a $160,000 tax break next year and they are no longer even running.

As the man said, "Wealth can not be created only taken." Maybe he should have added from the foolish".
Money as Debt
Comment by Paul Evans on 8th December 2010
This 47 minute video presents an easy to understand tutorial of the Canadian money supply.

http://video.google.com/videoplay?docid=5352106773770802849#
One more thing.
Comment by Helmut Giesbrecht on 8th December 2010
If you really want to know how the deck is stacked against those trying to stay afloat then read the article on the hydro rate increase above. The investors and prnciple mover behind IPP's are going to make every consumer pay for their private power "gold rush." Wealth can not be created only taken!
Sorry too Bryan, but just a sec
Comment by Merv Ritchie on 8th December 2010
So you are prepared to spout off stuff the MSN (Main Stream Media) tell you to believe, the bank/IMF bailouts ie Greece?

And you ask questions like; How will I buy a home etc etc?

Yet you claim you wont take the time to do even the most basic research, stuff that is handed to you virtually on a silver platter? An hour of your precious time to possibly learn something?

Jeeze, why do I even try?

All your questions and more are answered. Yes some cannot handle the truth but you, Bryan, I know you can, you just have to try a little.

Take the time, it is entertaining, you might get a couple laughs, and you will most definitely not be disappointed you did.

Merv
Sorry Merv
Comment by Bryan Notheisz on 8th December 2010
I don't watch Survivor or the Simpsons, or any sitcoms on a regular basis but I also am not going to devote the next hour and a half to watching the attached video without having some confidence in the knowledge of the source. I guess I will just remain in the dark on this. This decision is based on the knowledge that if I so chose, I could produce a video on how to remove your own appendix, with the secret hope of course that no one actually tried to follow my instructions. Get my point?
Seems the easy route is for the masses
Comment by Merv Ritchie on 8th December 2010
Taking the time to watch the video linked with this article should be a requirement before one comments, but asking one to educate themselves if just too much we suppose. The common persons education system has kept the sheep in their places. One will watch the Simpsons and Survivor but will have no idea about survival, strange days indeed.
Why did I read this?
Comment by Bryan Notheisz on 8th December 2010
I agree with Rick, this is an oversimplistic argument that I am sure could be argued at every sentence. I am not sure what David is promoting here, are we supposed to shun banks? How will I buy a home, a car or anything else I need? How will the economy work if no one can buy the life preservers, as they don't have the money to buy them outright? How quickly will our economy completely disintegrate and we will become the starving part of the world?

When I turn on my television and watch news of the Central Banks bailing out countries, it is because these countries have for to long wanted far more life preservers than they needed or could actually afford. Maybe if the citizens of Greece actually paid all their taxes they might not be broke.

Besides, although Capitalism has its problems, I think most agree that Communism failed. If people are just repeatedly given their life preservers they will over time, forget how to make their own, earn money to buy their own, know how to or care about keeping their own well maintained, and will expect it to just be there. And when they do get one, the same as everyone elses, it won't work very well.

I think next time I see one of your posts I will go on to the next "news" item here on the Terrace Daily.
Not forgetting
Comment by David Ealing on 8th December 2010
Dear Rick McDaniel,
Thank you for your comment but I assure you I have not forgotten anything. The error we are all believing is that there are other pieces floating around the sea somewhere. There are NO dollars floating around our economy. Someone has borrowed 100% of every dollar in our economy. Each of these dollars must be returned with interest. Debt is the guaranteed result.
I have a formula. I call it the Formula for Debt P - (P + I) = D.
"P" equals Principle, "I" equals Interest and "D" equals Debt. Every dollar circulating within our economy is part of the Principle of somebody's loan. Every dollar is subject to some level of interest. Every dollar must be repaid with Interest.
I assure you that if every dollar was repaid there would be no extra pieces for anyone to hang onto.
Don't believe me. Ask the Bank of Canada. You'll have to believe them.
David
Your Forgetting Something
Comment by Rick McDaniel on 8th December 2010
Hi David, your article leaves out one important piece of the puzzle, or life preserver if you will. The Banker lends out the pieces from a market. The 5% charged is not intended to make anyone drown, in fact in an open market there are things floating around in the sea that those who are borrowing the life preservers can trade for their new pieces. The intent is not to make anybody drown, but to encourage the swimmers to strive to collect more pieces and thus create more life preservers. The ones who are truly great swimmers tend in fact to eventually start giving pieces to those who need them. Thus a social network is created.
Though your analogy is interesting, it is overly simplistic and relies on a finite number of life preservers.
So, my advice is swim David Swim. Collect some extra pieces and distribute them when you can. Many do!