Ever Decreasing Circles – Why The Worldwide Banking Ponzi-Scheme Must Be Reset

Submitted by Luke Eastwood,

Since central banks became a ‘thing’ back in the early 20th century, we have seen a massive decline in the national finances of most countries around the world. Of course, predating this was the formation of the Bank of England and its role in the financing of the British empire, but of more significance to our current situation is the rise of America, the formation of the Federal Reserve, the Bank of International Settlements (BIS) and the World Bank Group (post Bretton Woods Conference) and the International Monetary Fund (IMF).

One could argue that all of these institutions exist not for the benefit of the world or humanity but to deprive nation states of their income and ownership of their resources, transferring both into the hands of private corporations and their shareholders. So today we are at a point in time where most countries are hideously in debt, many with debts far exceeding the dangerous 100% level of debt to gross domestic product (GDP) ratio. While Japan has far exceeded this for decades (currently 260%+) and not totally collapsed, it has proven to be a massive drag on any country, with huge amounts of money being wasted on interest payments alone.

The USA is of course fast catching up with Japan, or at least appears to be trying to, in terms of increasing its debt ratio. By any metric such failures to address ever-increasing debt are destined to lead to an implosion eventually, with a contraction into ever decreasing circles. There is not enough income in the world to pay back all of the money that is owed, so more and more debt is issued to continue paying the ever-increasing interest on the ever-increasing debts.

This imbecilic mistake is the kind of financial mismanagement that 10-year-olds can comprehend, yet this is a worldwide phenomenon that only a few countries have avoided (Russia being a case in point with approx. 20% debt to GDP). However, this situation has been allowed to occur and persist for decades now. In personal finances the same situation has occurred for most people.

When I was in a child, in the 1970s, many people did not have a bank account, credit was limited to expensive white goods in some shops and a ‘slate’ with the local grocer, that had to be cleared or at least substantially reduced at the end of the month. The idea of accumulating debt of 3-10 times your annual household income was just not an option for most people. This changed with the arrival of ‘personal banking’ in the 1980s, eventually leading to the current situation, where most families live paycheck to paycheck because they have maxed-out their borrowing with banks and credit card companies – meaning that a massive portion of their incomes is wasted on debt payments and the interest accrued.

Of course, such situations cannot continue forever, which is why the World Economic Forum (WEF) came up with their heinous Great Reset plan, to deal with the inevitable ‘end of the road’ when the financial ‘can’ cannot be kicked any further and collapse is unavoidable. In fact, one might conclude the WEF plan includes an induced or controlled collapse, in preparation for their neo-feudal and totalitarian Great Reset to be rolled out across a largely unsuspecting world.

To believe that we can continue as we are indefinitely is pure foolishness and a reset of sorts is both essential and inevitable in an unsustainable situation such as the world’s financial decline. On all 3 levels – national, commercial and personal finance we have a zombie apocalypse in progress already, but one that is hardly recognized. In all three areas, the ‘walking dead’ continue to miraculously function, based on confidence alone I have concluded. However, over-leveraging is already at critical levels and eventually concealing the zombie state of finances will no longer be possible, that time is approaching very soon.

At this point we are left with few realistic options.

To me, at least, the worst option is to accept the WEF Great Reset plan, due for implementation in full by 2030, this is no more than a wholesale theft of private equity and income and enforcement of a world-wide digital prison for the middle and working (or ex-working) classes. Successful implementation of the Great Reset is nothing short of a totalitarian pseudo-Communist dictatorship. This would be a neo-feudal, fascist world government and a total disaster for the bulk of humanity, for however long it survived before an inevitable revolt against the ‘Elites’ who seek to usher it in.

To do nothing, is an option, but given the attempts by the WEF, if their plan fails then we will still be in a hopeless situation of bankrupt countries, insolvent companies, insolvent/defunct financial institutions and vast numbers of individuals with almost none or no available income, or facing bankruptcy/insolvency.

While this may be less horrific than the Great Reset, it would be chaotic, destructive and probably horrific as well.

The only other sensible option I can see is a default/debt cancellation reset. While this would be a catastrophic situation for the BIS, the IMF and the World Bank Group and all their investors who would lose out of their continued income flows, it would be a reprieve for more-or-less everyone else. If one country defaults it can be a disaster for that country, but not always – as was the case for Iceland. If every indebted country defaulted at the same time, then it would bankrupt the BIS, World Bank, IBS and the owners of central banks and the Federal Reserve. However, if the entire system was reset to zero and money re-established based on some basket of assets or resources, then trade and commerce could resume. Resuming a gold-backed currency has been touted greatly, but perhaps currencies based on a wider selection of physical resources might be more relevant for today? An updated asset-backed form of finance might include precious metals, rare-earth elements, energy resources, etc. Once capital is re-established from a position of zero debt, with all previous debt erased, a more sensible model for borrowing and issuance of debt could be established – perhaps with simple instead of compound interest and strict limits on leverage levels and duration?

The whole current situation only became possible because of an insane desire for outrageous profits instead of substantial profits, which has led to a bizarre form of cannibalism of human society. Eventually when you have eaten everybody else you are forced to eat your own limbs and face your own inevitable death – but the ‘Elites’ who rigged up this whole Ponzi-scheme failed to see that they too would end up victims of their own success in the end. In ancient Babylon the debt problem was solved by debt cancellation on the installation of a new ruler to replace the dead king. This rather drastic measure was rather simplistic but as the timescale was relatively short, it did solve the problem of unsustainable lending and out of control debt obligations.

What I am suggesting has no-doubt been proposed by others – it is in effect a reset, perhaps a Humane Reset, rather than a Great Reset? It would seek to preserve the wealth, assets and financial viability of nations, commercial organisations and individuals, preventing a massive transfer of assets to a few individuals who own the Ponzi-scheme. In fact, the only real losers would be the owners of the BIS, IMF etc, who would no longer have any income on their balance sheets, only loans that have become defunct. It would be an opportunity to take stock, return to sound financial practices and enable commerce to recommence on a more equal, fair and truly sustainable footing. Surely, in the long-run, a more calibrated and reasonable financial system, with permanent fiscal checks and balances, is the only practical means of enabling human society to function in a beneficial, rather than ultimately self-destructive way?

We must ‘grasp the nettle’ regarding the impending financial collapse, that cannot be far away. If we do not come up with a viable alternative plan, and very soon, we will be faced with a choice of the Great Reset or an unpredictable and chaotic implosion. Neither of these choices is going to be good for human civilization, so a credible alternative must be formulated while there is still time to implement one!