A hypothetical argument.
by Des Pensable
Imagine a world composed of many small sovereign countries. Each country trades with its neighbors. Each is limited by its population size, its natural resources and the climate. All use gold for trade.
Everyone is happy and trade increases and everybody trades gold for goods but then the supply of gold runs low. Trade is limited by the finite amount of gold.
All the rich elite in the countries around the globe have taken most of the gold – they lust for more. They look across their borders. There is a terrible war, tens of millions die. A new economic cycle is started.
Country A says it has lots of gold. It is strong and wealthy. It will print paper money and exchange it for gold at any time. The rich elite agree and they start trading with A’s paper money. Everyone is happy and the population grows again.
Country A prints lots of paper money for everyone and uses it to buy from everyone. It builds a big army to protect everyone so there will be no more wars but prints much more paper money than it has gold.
Some countries become worried about country A’s spendthrift nature and its big army. They want to swap A’s paper money for gold.
Country A realizes it will run out of gold if all countries want to swap their paper money for gold so it suddenly declares no more swapping its paper money for gold. The people in lots of countries are suddenly unhappy; that wasn’t the deal they had agreed to.
Small country B rich in natural resources is unhappy with country A’s paper money and decides that it would rather trade in gold.
Country A worries that if the other countries start using gold again then they will not want A’s paper money and it will lose its value. So Country A uses its big army to invade B installs a puppet government and takes control of its gold and resources.
Country A’s actions now threatens any others that want to trade in gold that it will invade them, install a puppet government and take their gold and resources.
Country A builds hundreds of “defence” bases all over the world to protect the world and begins spying on everyone to ensure they only do what country A wants. The world begins to fear country A has a hidden agenda. It wants to be an empire and control them all.
Country A writes a magic new trade deal that allows it to buy anything and everything in other countries with its paper money. It tells everyone that in order to remain friendly with A they must adopt the magic new trade deal that uses A’s paper money.
Large country C is unhappy with country A’s magic trade deal and its paper money. It suggests everyone start trading in C’s own paper money backed by gold and it writes its own magic new trade deal and invites all countries to join.
Country A is unhappy with country C’s magic new trade deal and sees it as a dire threat to A’s prosperity and it’s ego.
Country A bribes or threatens politicians in many countries to agree to its trade deal and they agree. The people in many countries object but they are ignored. If they protest they are gaoled by their own corrupted politicians
Country A happily prints enough paper money to buy everything worth buying in all the countries in its trade group. The land, the water, the power stations and grids, the media, the schools, colleges and unis; the health system, ports airports and roads. Many people object but are gaoled.
Now country A owns everything in all the countries in its trade group and has control of them. It has the empire that its rich elite craved. It owns a large part of the world and the world’s production. It can set the values it pays for everything. It can say who lives and who dies. But the people are not happy.
Everyone except the rich elite and corrupt politicians are effectively now slaves of country A’s empire. It’s proud that it has done this all with just printed paper, threats and appeals to people’s greed.
Country A now looks greedily around the world and at country C and the members of C’s trading group. All the non- aligned countries become scared and join either A or C’s trade group. There is no other option.
Both Country A and C’s rich elite and their puppet governments become decadent and negligent. They revel in their own vanity. They denounce and threaten each other.
They ignore Global Warming which drastically reduces water availability and food production. The oceans rise displacing hundreds of millions of people. The decadent can afford the food and water but the majority and displaced cannot, they starve, they finally revolt, world war rages, billions like you and me and our friends and families die.
Much of the world’s agricultural land is ruined. Many regions of the planet are uninhabitable. A large proportion of the world’s animal and plant species have been annihilated. Much of the world’s knowledge is lost. The world is a very different, more hostile place.
Both Country A and C’s empire ambitions end. World population is reduced to a much lower level and a new rich elite wish to start trading again in gold.
Next cycle of economic warfare begins.
There must be a lesson for people like you and me in here somewhere?
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