Gregory T.

Morales Creditism
the

Global Creditist Economy

A New Critical Theory Fall 2003
First Present Global Studies Association annual Conference Spring 2004 American Sociological Association annual Conference Fall 2004 California Sociological Association annual Conference Winter 2004

San Diego State University 1256 Sparrow Street San Diego California 92114 United States of America 619-300-6570

Gregory T. Morales

Global Creditist Economy

Introduction
The dangers of credit use and expansion have been suggested through the works of authors and playwrights for thousands of years. In sources ranging from the Christian Bible to more recent works such as David Harveys The New Imperialism,1 these warnings concerning credit have been clearly stated. Countries participating in the global economy, even those with comparative skills like technologies and natural endowments, enjoy different levels of access to world credit markets. These uneven conditions have been brought about by a new imperialist credit culture that has taken root and is hidden in the imperfections of the once powerful capitalist economic system. In this work, the source of control will be referred to as the International Credit Consortium (ICC); by this objectifying of both sources of credit investment and objectifying of labor, the ICC avoids the risks of association with the Moral Hazard2 of involving labor markets of periphery and semi-periphery economies.

Economic System Behind a Veil of International Cooperation The World Trade Organization (WTO) appears to support a general disassociation of human/world cultural responsibilities for those countries participating in the floating
1 2

Harvey, The New Imperialism. The idea of the moral hazard is here used as associated with exploitation of labor as investigated by Adorno and Horkheimer, Dialectic of Enlightenment. In this text, the objectification of the worker is said to remove levels of social responsibility from the states thus removing the moral hazard from the state apparatus as well as from those who have control over the means of production. See Notes and Drafts and QUAND-MEME (Adorno and Horkheimer, 217-218). This term is also used in other works. One example is found in Torres where he writes, El Estado no es para el hombre sino el Hombre para el Estado (117).

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currency markets or the Creditist3 economy. The population of each country is the responsibility of its domestic governmental systems and not the ICC. Through the use of direct foreign investment gaining access and control over localized labor markets and resources, profits are gathered and centralized out of country to be used by multinational corporations thus removing power and economic influences from local governments and populations. The consumer market of the United States, the core economy4 appears to be predominantly based upon consumption value and not labor value of the individuals in this market place. A labor source under this condition neither serves only as a source of credit value and collects real values of capital nor contributes to production commodity production at any level.5

The Shifting of Economic Paradigms from Capitalism to Creditism

According to Thomas Kuhn, the shift from one paradigm to another is usually quite sudden and disruptive. It seems that only through the use of conditional control over global
3

A Creditist Economy is realized when greater than 50% of positive economic indicators (or negative as the case may soon be) are derived from credit, debt, applied interest, the multiplier affects of debt/credit, or other loan/usury vehicles. 4 Core, periphery and semi-periphery economies are models described in Wallerstein, The Capitalist WorldEconomy.
5

This theory is investigated by almost every non-North American author writing on the topic of labor markets economy, wage value economics, and consumerism. (See Sweezy, chapter 9 Crises associated with the falling tendency of the rate of profit.) This leads into the gathering increasing levels of profit directly from labor befit of wages, or as Harvey puts it in The Limits to Capital, Chapter 2, part II, The Reduction of Skilled to Simple Labor, the simplest form of labor is that which does not involve labor but that labor consumes and gathers debt. In the generally accepted condition of capitalism as denoted in Marxs Capital, it is imperative that labor exchange earned wage income for commodities produced in order for capitalism to function. It is the loss of earned wage income and the accumulations of wealth into the hands that control the means of production that mainly contributes to the trendy of profitability to decline. Credit allows for shortfalls in earned wage incomes as well as removes the limit of value accumulation. So long as greater amounts of credit are extended to labor and the means of measuring and maintaining the associative values of credit are accumulated by the wealthy, the credit market economy Creditism will continue to function.

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monetary systems and the eventual creation of a seamless world banking system did the last economic paradigm shift result only in a global economic depression leading to World War II and not anarchy. That such early economists and humanists as Marx, Henry James, and C. H. Douglas realized the dangers inherent to the capitalist economy is testimony to their brilliance; that we persist in attempting to redefine the terms and metaphors of long defunct capitalist economic systems is not brilliant.6 There is a general tendency by state structures to maintain the metaphors used in old paradigms. This creates a level of stability and helps to control and to direct the workings of governmental systems and control over economies.7

The Formula of Capitalism as Compared to the Formula for Creditism

Generally, capitalism is defined as an economy based upon the principle of a transition of money into a commodity and back into money. More exact Marxist details of the original capitalism can be found in Marx, Capital, Volume 1.
6

I present the case in this work that the early theory of what I call Creditism (I have attempted to copyright this term) is a new critical theory. Some mistakes were made and errors discovered as well. During research of the topics access to credit, extension of credit, and use of credit, I found two, little known articles that included the term Creditism. I later discovered (after years of effort and search) that D.H. Douglas had, almost one hundred years earlier, coined the term Creditism. In his books Economic Democracy, Credit Power and Democracy; The Control and Distribution of Production; Social Credit; Warning Democracy; and The Monopoly of Credit (to name a few), a general understanding of how credit had effected changes over the capitalist economy was outlined. What I had thought to be my lone realization had already appeared and changed the very nature of the capitalist system itself. Moreover, over the last 8 years, I stood to ridicule as I presented at conferences and conversations what I was told was a crack-pot idea that had appeared to be very much like the theories included in the works of Douglas and Marx and the efforts of Henry James. Like McCarthyism in the United States of America, it is imperative (as noted in the works of Torres, Marx, Sweezy, Douglas, and Harvey) that a near fascist state need be put in place in order to maintain control over the resulting decay caused by the two main crises of a capital economy: exchange values and the tendency of profitability to decline over time.
7

The methods by which powerful groups re-present metaphors have been examined and explained in the lectures of Stuart Hall. These methods are not the main topic of this paper; interested readers may refer directly to Hall.

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LP M----C MP ----------- P ----------- C -----------M

This is an extended formula for capitalism. M (money) is used to obtain C (commodity) through LP (labor power) and MP (manufacturing power); this becomes P (product), and C (products bought/consumed) becomes M (money). The full value of LP and MP added to C is realized at the last stage as profit. On the other hand, the formula for Creditism might be conceived as this:8 ALV Cr------Cr*C ---------Cr*C AMP Where: Cr = Credit; the power to produce credit does not require labor, raw materials, nor manufacturing. Cr*C = Credit creation or the creation of that idea labeled credit. Cr*CALV and Cr*AMP = Credit created aesthetic labor value and credit created aesthetic manufacturing value, points at which credit is used by both members the bourgeoisie, proletariats and lumpinproletariats.9 This gives credit created a strong aesthetic value through association with the once strong reserve worth of manufacturing and labor.
8

-------- Cr *V ----- Cr *DI ------ Cr *VA

Morales, Our Null Society: Creditism Theoretical Economic Model.

Bourgeoisie, proletariats, and lumpinproletariats are used by Marx in his work, Capital. The bourgeoisie are those people who have control over the means of production, the proletariats are those people who labor, and the lumpinporletariats are those people who makeup the labor reserve.

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Cr*V = Credit created vehicle is seen as a unit which is free from the ties of social responsibility and cultural norms. This unit of indebtedness can be traded and represents labors potential and manufacturings potential, not only at the time of creation but well into the future potential of labor wedge earning potentials and manufacturing profit potentials. Indentured servants, sharecroppers, peons, etc. equal credit slavery. Cr *DI = Credit created debt interest. At this point, the associative values (Cr*CALV and Cr*Amp) as represented in Cr*V is added aesthetic value of interest rates as they are attached to the principal amount of the credit vehicle. This creates yet another multiplier effect that is in turn attached to the overall aesthetic value of the credit vehicle. Estimation of this value it typically calculated by use of credit scores, credit index, and insurance information from data tables on both members of the labor and manufacturing sectors. This is commonly referred to as moral hazard. Cr *VA = Credit value accumulation. Unlike real wealth (capital, portable property) that has a real value attached (before the currencies were taken the off gold/silver standards), credit value creation and accumulations are limitless. With only aesthetic and associative values attached to Cr*VA, the amount of wealth accumulation is limitless. The extent of polarization and societal stresses placed upon our world society/societies due to this limitless amount of wealth accumulation (greed) is also limitless. Only labor wage earnings and manufacturing values added potential are limited, and credit economic expansion is based upon credit creation formula.

How the Limits to Capital Have Been Surpassed It appears that there was something beyond the Limits to Capital operating within

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our national economic system. Where money once had a hard value, a direct link to a prescribed amount of a commodity such as gold or silver in many modern western economic systems, today there seems to be no end to the amount of wealth a country or individual could amass. As the theory of continually expanding credit market had already been presented,10 the methods used to control and re-present credit economies had to be discovered and applied to the Creditist economic theory. That the methods of convincing the masses that an economic system based only upon associative values of representation of debt had worked was obvious. Everyone seemed to understand that the paper money of the United State represented nothing more than government debt and that our stock markets and bond markets were simply representations of debt, but then why had the economy not realized the negative aspects of this hazardous condition? The public seemed to know all this, and the wonder was that the populations suffering under these floating economies had not yet lost trust in their fictitious economy, and this is why. First, it is important to understand that value was not always represented by numbers in a bank account or checkbook. In the not too distant past, either people would carry all the money they had on their person, or if they happened to have ownership of property, they sometimes stored the excess wealth somewhere about that property in the form of portable property such as gold, silver, copper or some other indicator of value accepted as such by their society. As the amount of gold or silver or whatever may be the coin of the realm had an absolute limit (real items being of a finite nature), money was almost never accumulated in one place very long, and unless lost, it was usually redistributed over time. The economy was usually maintained or directed as part of a state governmental system, and the state created the coin and a generally restrictive economy
10

Morales, Creditism Global Credit Economy.

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Global Creditist Economy

existed. With the appearance of an ever more independent merchant class, coins from many different state controlled economic systems were exchanged and valued by individuals, and eventually trade/artist/merchant guilds eventually formed into banking systems. In Alexandre Dumas The Count of Monte Cristo, an example of such an early banking system can be seen in operation. Edmond Dantes is able to move across countries easily because of letters of credit with the restriction that each location at which the letters were exchanged for coin of the realm thus enabling the transaction exacted fee or percentage. In the case of moving large fortunes across open water or lawless lands, the predictable loss of a certain percentage of the value of the assets was much preferable than the risks associated with transporting a few hundred pounds of gold and silver, paying for guards, and perhaps risking a total loss at sea. The shift important in the case of the credit economy in the United States of America is the formations of the National Banking System. The National Bank Act (ch. 58, 12 Stat. 665, February 25, 1863) was the beginning of the National Banking System in the United States of America, and after that time, paper money of a static value was available to the public. Eventually the banking system would be come what we see today, a source of productivity expansion based upon interest rates, debt, and the likelihood of debtors paying off the loan and not defaulting.11 The most noteworthy change in the way our national economy is valued and gauged in the last thirty years was the shift which took place in the early 1990s. As noted in Dr. Kepplers The Fictitious Economy, the formula gauging productivity and economic growth in the United States changed in such as way as to include debts, interest on debts,
11

Outlined in Vilar.

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and profits made from trading and exchanging debt indicators (called Credit Vehicles later in this paper.) Before the shift from a formula producing a number representing Gross National Product (GNP) to a formula producing a number representing Gross Domestic Product, slowing rates of consumption increased, and the oppressive reaction to governmental revenue streams derived from taxation on earned wage incomes threatened to pull the country from a condition of stagflation into depression. I will include the data supporting this point,12 but the gist of it is that the formula used to measure economic
12

http://www.socialstudieshelp.com/Eco_indicators.htm provides an explanation of this point. The terms and identity of capital are re-presented in shift from Gross National Product (GNP) to Gross Domestic Product (GDP).The difference between C + G + I + X = GNP and C + G + I +F = GDP is not only that in GDP, the formula includes function F in place of function X but also what it includes as part of F which was not a necessary part of X. At about the same time, functions of the consumer price index (CPI) served as nearly a fully compensatory part of GNP when GNP was the norm of measuring economic expansion or contraction inside the mainstream economic system of the United States of America. In the case of my application of these two formul, it is noted that X is physical economic expansion as seen in modern capitalism and F is the associative economic expansion as realized by extension of credit, use of credit and any and all gains, interest, and penitential associated with the past, present, or future use of said credit. In the later case F, the CPI is factored in so that the inflationary tendencies of credit issuance and use are removed (the economically negative aspects of credit use) so that only the positive contributions of credit market expansion can be realized in the formula for GDP. As CPI is factored from the use and inclusion of credit vehicles and all associated gains realized from the use of credit (gains, interest and penitential associated with the past, present, or future use of said credit or CC Credit Contributors), these second producers of profit (CC) appear as and solely positive additions of the economy in which these false credit Conditions appear. (See Keppler). Economists have devised numerous statistics designed to ascertain the overall health of our economy. Historically, the most quoted measure of economic activity is what is called Gross National Product (GNP). The Gross National Product (GNP) is a nations total output of goods and services produced by a country in one year. In obtaining the value of the GNP, only the final value of a product is counted (e.g., homes but not the construction materials they were built with). The four major components of GNP are consumer purchases (C), government spending (G), private investment (I), and exports (X). The formula is thus: C + G + I + X = GNP. The Gross Domestic Product (GDP) is the monetary value of all goods and services performed in a nation in one year. GDP measures the economic strength of a nation. It is computed by multiplying the quantity of all goods and services by their price. When this is done for all three categories, consumer spending (C), government spending (G), and investments (I), the results are added to give the GDP: C + G + I +F = GDP. In the last several years, GDP has gained favor as a more accurate barometer of the state of the economy. With growing globalization, our economy is increasingly reliant on goods we produce beyond our national borders. While GNP does not calculate this, GDP does. Though the GDP and GNP are the most widely used system of determining a nations economic performance, they are certainly not perfect. There are certain factors within the economy that keep the GDP and GNP from being the most reliable measurements. The first factors are reporting delays. Because the reporting process of a nations monetary flow is so difficult to document, GDP estimates are made quarterly. The figures are then revised for months after that so it takes a while to discover how the economy actually performed. Thus, there is a disparity between the actual GDP and the reported GDP. The second factor is the composition of output. Generally, increases in the GDP insinuate that people had jobs and earned an income. However, the GDP alone does not tell the composition of the output.

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growth pre-1991 GNP did not include secondary revenues streams from credit interest whereas the formula used to measure economic expansion in 1991 GDP includes such sources. The GNP to GDP shift, coupled with the huge government spending increases of the last six years, eventually contributed to the multiplier effect.13 We achieved the current condition of creating an economic environment that is apparently greater than fifty percent derived from various forms of debt or the economic arbitrage14 between competing
An increase in a certain amount of dollars may not mean that there was more output by laborers but that the government undertook production of, let us say, a certain weapon. A decline in GDP implies that the country is not doing as well as it was before. Yet this does not always hold true because the decline could indicate a positive innovation such as a reduction in the number of car batteries produced because a new one entered the market that lasts for twice as long. The third factor is quality of life. The GDP, while it measures the production of a nation, has little to say about the state in which the citizens are living. For example, a new housing project may be built, but if its construction or location interferes with the surrounding wildlife, then the value of the homes could be viewed differently. The fourth factor is the exclusion of non-market activities. Non-market activities are those activities that do not take place in the market, and most of them are not accounted for because of measurement problems. Such activities include services people provide for themselves like home maintenance and the services provided by homemakers. The fifth and final factor encompasses illegal activities. The GDP also excludes many goods and services because they are illicit. These include gambling, smuggling, prostitution, drugs, and counterfeiting. These activities as well as some legal ones that are not disclosed because of tax reasons, are part of what is called the underground economy. In an effort to remove inflation from price measurements, economists use price indexes which are statistical series to measure changes in prices over time. To construct a price index, a base year to compare all others to is chosen. Next, a market basket of goods is selected. These goods are representative of the purchases to be made over time. The number of goods in the basket must remain fixed after the selection is made and thus captures the overall trend in prices. Lastly, the price of each item in the market basket is recorded and then totaled. The final total is representative of the market basket in the base year and is valued at 100%. This way allows us to determine an inflation rate.
13

The multiplier effect is a concept in economics that small changes in initial spending (such as consumption, investments, government spending, or net exports) could amount to a huge change in the Gross Domestic Product. I believe that the multiplier effect is most noticeable when looking at debt, representations of debt, and interest applied to that debt (Morales, Creditist Economy). Taking the simple idea of an associative or aesthetic value, this idea of credit can be extended to all aspects and levels of economic systems regardless of trade barriers or even the ability of the creditor to return the principle amount to the lenders. Therefore, we have the multiplier effect on the creation of the idea credit along with association with the creditor (user when production consumption or labor value is give to the idea credit). The interest to be paid is projected over time, the associative long term and short term trading value of the credit association (Morales, Global Credit Economy), and arbitrage (Morales, Global Arbitrage) between the real value of the credit extended and the hard values of the thing credit was used to accumulate and the believed value of the extended credit, the hard value of items, and the end value amount added to the credit economic association. Creating Creditism (Morales) predicts the end (as per Marx, James, and Douglas) of the old capitalist system as the limits and space of capital are realized (see Harvey). 14 Economic arbitrage is the subject of Global Arbitrage Somewhere between Fact and Fiction

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economic systems at the national levels. The calculated growth is not from credit use associated with the spending of earned wages, incomes, or production of products but simply from the issuance of new debt, interest, and other values derived either directly or indirectly from the debt that makes up the shrinking minority of world economic markets. There has been a change in the ideal capitalist economy. The world does not have a capitalist economy unless one considers the small isolated economies of the less developed free countries of the world. If there is to be a change, it will only be brought about when the proletariat refuses to gather and to use debt-vehicles and brings down the Creditist economic system that has enslaved us all. Creditism has created an economic environment in which even the most powerful countries are in debt, and their worldwide actions are dictated to them by the greed for profits and the desire for credit-value accumulation. The communist models have never been given a chance. In all the international communist societies that were attempted, little men/women have put themselves above the desire of the masses and placed themselves in power thus leading to life styles separated from the masses. This has proven to be a style of single-minded self-serving ideology that has led only to failure and violence. We must accept that due to the greed of those who come to power, each system of government is doomed to corruption from inside. Another reason is the economic isolation of even small counties that try to create a true democracy; in a real democracy, there is no room for greed or the desire for more (anything) than those around who are presumed to be our equals.
(Morales). Competing and conflicting credit values associated with the electronic transfers involved in floating currency exchanges often creates small anomalies in values of exchanges. These values of exchange disparities are exploited by the world banks electronic credit exchanges clearing houses in nanosecond speed thus creating over the course of a day millions of dollars (if we use USD as a reference) of credit value accumulations.

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The Creditist economy is powerful because it requires only the ideal of money (credit-extension); this ideal of money (credit) requires no labor to produce, no physical resources for its creation, only a population willing to put itself into ever-greater amounts of debt. China is the only real large economy left, an economy with a real value and a currency with a real value (not floated like the rest of the large counties of the world).

Capital Economy versus Credit Economy The Credit Markets Trade models point to a trend biased towards a kind of general asymmetry in modes of production wherein a specialization in these modes of production that dictate whether a country is to be considered wealthy or not wealthy. In the past, the latter (wealthy elites) were believed to be concentrating their manufacturing production capacities on products involving high degrees of precision (scientific application); the non-wealthy focused the limited powers of production on relatively labor intensive production models or in products of lower or intermediate scientific (technical) origin. The preservation of the ideal (that this asymmetry is a static function) is not only desirable but also absolutely necessary so that differences in labor/consumer markets endowments will be attributed to the general developmental markets stage of the periphery and semi-periphery economic systems of the countries hosting the oppressed labor force if the idea of a capitalist economic system is in place.15 If the nature of production were to be related to the innovations in the world credit markets over the last 40 years, the accumulation in credit debt of the consumer in what was once thought of as the core economy (the United States) would lose all isolative value; this

15

The capitalist economic system is an all-inclusive version of Marxs model of the capitalist worldeconomy described in Lukacs.

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would effect a correction to real value in what is actually the debt credit maintenance system of the United States and other countries fettered with floating currencies (currencies with values set by comparative action control by the ICC). Only in the periphery and semi-periphery economic systems is there still a dynamic economic system whereby compared to the scale of the overall gross domestic product of those periphery and semi-periphery economic systems, could an economic system even remotely comparable to what is popularly thought of as a capitalist system be found. The richness of these countries lies not in their access to credit value but in their very control over the labor aspect of the means of production. This control over the external control by the ICC is the largest concern and danger to the continued expansion and influence of the ICC. These factors of the world economic system cannot be denied if we still hold onto the importance of a true global economy as an absolute necessity. These factors, instead, shall be explored in an abstract form of absolute credit value; the contribution of the credit value associated with a labor/economic system of Wallersteins model of core, semi-periphery, and periphery economies; and the aspects of market functions as they relate to inter-country production/consumption/compensation and accumulation/access to credit debt. Most particularly, I mean to show that world credit markets and the ICC control and exude more influence over the world economy than all technologies, raw material wealth, access to labor, and production combined. Even if all variables were identical within, without, and between countries and economies and an inertial scale of economic worth were not absent, the moral hazard derived from the very means of collecting wealth (credit value) from the maintenance of credit debt would if realized by the general populations

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of the world cause the collapse of the international credit markets. The resultant would be the ICCs being held responsible for the theft of surplus labor value through the application of a system of indentured servitude more acute than debt-peonage, more cruel than share cropping, and more dehumanizing and just as real as black slavery as it existed for three hundred years in the USA. The level of influence and control maintained by the ICC can be seen more readily in the use of cost of credit contract and the forced cooperation between independent countries to submit to the enforcement (and punishments) for those seeking to free themselves from the yoke of credit oppression. The only differences in the form of credit management of countries are facilitated in the form of domestic institutions by which the ICC manifests itself and the method by which contract enforcement is enacted.

Credit The Sword of Damocles Over all, oppressed populations have a higher interest rate or rationed credit, and this may lead to either a full rebellion of labor (those not part of the ICC or the world credit markets) or the complete and total submission of all labor/consumer populations whereby they become less than consumer cows being milked for their credit maintenance value by those who control world credit markets. Within this atmosphere of non-comparative advantage in means of production and the processes of normal capitalist economic means, the basic idea of capital investment, commodity cost, labor, and transport cost are invalid. What is more desirable is the ability of the ICC to make profit from no capital risk, paying nothing for commodities used, little to nothing for labor, and having all costs associated with the transportation of consumer goods paid for in advance by use of a credit vehicle by

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the consumer. In this new world credit economy, where the only motive for production is greed for profit, not consumer demand or need for product, it is now necessary only to create an ideal value associated with the item. In addition, the idea of obtaining these items gives the credit consumer an instant cultural worth as each item (product) has an associated cultural value that is assured by thousands upon thousands of images presented in advertising media. It is at this point that the old idea of the comparative advantage is mute; the processed goods, created by an ever grow questing for profit (not only credit value), requires little, if any, working capital. The control of the credit markets on consumer/merchandise exchange has been only relatively explored, and it focused mainly on the antiquated ideas such as supply and demand on conflict theory as it applies to labor and those controlling the means of production. These empirical abstract studies have not realized the absolute worthless value of our paper economy, the ability of credit is being the enabling force behind not only production but also labor payment and consumer forces as well. The dream of a real American (whatever that means) is Antaean. It is as if there were some inward call to embrace capitalism at all cost, risking everything by investing all his capital in a quest to produce an item of higher quality and great functionality in order to gain the trust of the American consumer and thereby making a profit by gathering the reserve labor value only theatrically (as if it were all an just a act in the play Capitalist Economy) represented in the coin of the realm (paper money). This dream is no longer considered a feasible business model. How is this not a viable business model? Construct a business model based upon a product of higher quality and

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greater functionality; invest all your capital with only those two ideas included in your business model. (A) That a better product may be produced, this product may function at a higher capacity than others of its type, but without this products being included in the pantheon of product/image created cultural value (a form of mimesis much like that explained in Marcuses One Dimensional Man), profitability will only be driven by the consumers willingness to risk association with an item of no implied cultural value. It is the branding and associative qualities of the products name recognition which adds the greatest value to a product in todays western marketplace.

(B) That the consumer, being a creature now programmed and controlled by the desire to become part of a culture which rejects him (the idea of a self or a cultural identity other than that created instantly by association with products obtained) will only, through accidental purchase or perhaps some vaguely remembered memory of independent thought, spend part of his earned credit value on an item whose only value is functional and only satisfaction gained from a personal (individual) aesthetic interpretation of its form. The identity of the product and the success of item branding are of more value in western market places than the inherent identity value of the consumer. No, in todays credit economy, success is directly linked to comparative advantages of credit application and the access/association to a credit value. This is a dynamic force

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now emphasized in the ICC and the world industrial financial economy. This can be seen in relating Wallersteins periphery and semi-periphery economic models to the access and allocation of credit investment versus capital investment in non-core economy countries. Two differences in comparative advantage as represented in the business models as shown on page 16 are: (1) the processed goods requiring more working capital, marketing costs, or trade finance. Additionally (2) that we presume that more sophisticated manufactured finished products require more credit to cover selling and distribution costs than primary or intermediate products. In general, the impact of financial markets on merchandise trade is a relatively unexplored area of trade theory. In the empirical literature on East Asian success stories, the link between dynamic comparative advantage and easier financial access has often been emphasized. In the related literature on trade and industrial policy, the use in those countries of selective allocation of credit and loan guaranteed to achieve targets of trade and industrial restructuring has been cited as more effective than the more standard practice of trade restrictions and exchange control. We do not intend to take up many of the relevant issues here; our limited goal is to attempt an integration of one part of traditional trade theory with the growing theoretical literature on credit markets under imperfect information. The following section will focus upon basic economic models of the relationship between differential cost (or availability) of credit and comparative advantage, but even credit based economic systems differ (proportionally with recognition of credit condition) with respect to the underlying source of credit market imperfection along the lines noted in this section. In the next, we have a model of international borrowing with potential

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repudiation and sovereign immunity.

How the Dual Economies of Creditism and Capitalism Exist It is not how these two seemingly adverse economic systems can exist simultaneously but that they must exist together in order to ensure the continued expansion of the world economy as it is controlled by the ICC. In the late 1960s, it became painfully obvious that the system known as capitalism was falling short of its promises of being able to include all cultures and assimilate all other functioning in place economic systems and forms. It was at this time that the necessity of constructing a system of economy able to encompass diverse cultural, societal, and economic values under a single world supersystem that would be accepted, at least in form, by the worlds population. As a function of economy, the deception of the economist was easy to accomplish. It is not the main focus of economist to discover where the ideal values of GPD, national debt, profit, margin, cost, loss come from but to use formul to prove that the values the data have are useful and to apply this obtained information to project future incomes and expenditures. The capitalist ideal was another matter and somewhat more difficult to deal with. Three hundred years of depending on the idea of a capitalist economys being able to serve all members of a society were deeply entrenched in not only the minds but in the culture of the United States of America. The American wealthy elites, having majority control over the world credit banking systems as well as control over the means of production, and realizing the limitations and hazards of capitalism to a world economy and a world population, enacted a means of investment which assured not only the minimization of all

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risks associated with the methods of productions (by removing real capital from the equation). Also, by removing attached representations of labour reserve value from paper currency (floating the currency), a way to replace the failing system of capitalism with an economic system more akin to Marxist-communism was implemented; this system is expanding access to credit values of society.16 The first step was to remove all real value to the world monetary systems. This was done by removing the gold standard (all hard currency standards) for the core consumer economies. With only a superficial value (a value believed to be held in paper-notes) now represented in money. The next step was to remove all real value of saving-investments. This was done in two steps. The first step was that the restriction of reserve monies held by the banking systems was removed. This allowed for investment of credit where before only real capital was realized. As no real value was held by companies/corporations, their combined public and private debt (pension, drip investment, corporate bonds, intercorporate loans, commercial loans, and the sale of share of stock) being far in excess of the capital all risk through maintaining control over the means of production is removed. The real or hard value of all companies assets became a credit worth of a company making the investment system, once the corner stone of the capital system, little more than a cover for credit value accumulation. The second step was that the wage scale had to become static variable. This would remove any control over spending by the consumer. This control over consumer spending was further reinforced by allowing credit debt to the consumers. This variable was under the complete control of the ICC. However, this served and created a means for allowing for
16

The repressive effects of limiting access to credit was invested by C. H. Douglas in The Monopoly of Credit. The extension of credit to all people (or replacing the failing system of capitalism with an economic system more akin to Marxist-communism was implemented as this system is expanding access to credit values society) is also investigated by Douglas Economic Democracy.

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compensation for the lack of ability to earn a liveable wage for the greater part of the population. This form of communism was unknowingly accepted by the general population because those identifying the mode of economy continued using the economic principles of a fully realized core credit economy as they redefined capitalism in a way that allowed a paradigm shift without the typical sharp transitions normally associated with such a transition. The maintained belief by the general population of the core economy that the method of the economic existence remains capitalism popularly persists. The recession of the mid-1970 was a result of the stresses assaulted with fundamental change in the core economic system. As consumer savings and investments were converted from real/hard value to a credit value, some few hold out economies refused to embrace the new world order of the ICC and caused a momentary pause of the planned and controlled expansion of the new economy. This new credit economy, based almost solely upon debt credit expansion, consumer credit purchases, debt maintenance payment, and even the profits made from the debt vehicles themselves, required a juggernaut of debt maintenance payments to provide a source of static income to the ICC. This was realized in the growth of and the maintenance delivered to the ICC by the national debt of the core economy (the United States of America). Thus increases in national debt coincided with decreases in the rate of increase in consumer spending (consumer debt) served now to offset only the loss on credit income to the ICC.17 This was one to produce permanent increase in GDP (see GDP/GNP shift in introduction) as it included functions of gains from credit expansion and profits realized in associative credit values. Any shrinking of the national debt is hazardous to the core credit economy as proved by the few years in
17

The ICC, as noted in newer works such as Confessions of an Economic Hit Man, exerts control over not only credit markets but also the nations of the world that have been incorporated into the use of floating market economies or creditism.

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the late 1990s when the fear of being able to pay down the principle of the national debt was nearly realized. The reaction and increases of the current Bush Administration was not only functional but also necessary in order for credit economic expansion to continue. For the use of this paper, I will end this discussion here and interject some figures to illustrate these points.

1): Ideal global economy as presented by the World Trade Organization (WTO) shown in figure 1, The Dream (ICC Caret).

2): Accrual global economy as functioning today shown in figure 2, Present World Economic Interactions Model.

3): Past global economies and economic interaction shown in figure 3, Past Capitalist Global Economies as They Functioned.

4): Predicted global economic functionality shown in figure 4, The Number Machines.

These figures are used to show the interaction of economies within either their close set of control guidelines or international guidelines as the case dictates. These latter countries/economies existing as part of a worldwide Creditist economy are therefore headless, leaderless, and rather not independent, self-empowered cultures. As such, the cultures and societies existing as subservient economic systems are under extreme levels of external stress and cannot freely develop as independent viable cultures. This can be

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readily seen in colonized nations/states throughout history; the effects of removing local cultural norms, societal ties, and economic systems is crushing to the indigenous culture (and the future development of that culture), and the societal ties linking the people to each other and the local economic system can now exist only to be exploited by the colonizing culture. In the case of creditism, there is no culture other than perhaps the culture of greed, nor is there any societal norms but the normalized goal, profit.

Figure 1. Ideal global economy as presented by the WTO.

(1) The Dream (ICC Caret). The ICC operates as an adjustment to world economies where all economies work together for the greater good of the world economy.

Showing a fully integrated form of global economy in which although not all

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members are the same size or level, they function in one economy. In this model, all parts (sub-system economies) are of equal value and all-important to the one economic system. If this equality is not fully realized, the ideal global economy can never exist. One ring gear: the global economy in which all other gears (economies) regardless of size are included and functioning. (2) Present World Economic Interactions Model:

Figure 2. Accrual Global Economy Functioning

A)

Economies controlled by ICC: United States, Mexico, Canada, England, etc.

B) Economies tied directly to the ICC: European Union, the former CCCP, etc. C) Economies/Countries supplying resources to credit economy but operating/trading within limits with the ICC: South East Asia, Middle East,

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Pacific Islands, Africa, Central & South America, and Canada, etc. (Canada having both Socialist and Western economic attributes, exists as part of both structures.) D) Independent economies/Countries (not under control or influence of ICC): China. (China is currently in an economic position of only accumulation credit values from the core economy.) The ideal of a world capitalist economy functions only if all members are given access to investment, opportunity, and level of life existence. The use of Wallersteins core, periphery, and semi-periphery economic systems illustrate just how one sided the levels of production and consumption are and how the core (supposedly capitalist) economy gathers in the excesses in value (labor reserved) by expansion. Ring Gear = core creditist economies: encompasses those nations that have fully embraced the Creditist economy model (ICC gaining profit from all encompassed economies).18 Inner gears = planetary gears/Periphery creditist economies. The sun gear represents the US still thought of as the driving force and controller of creditist economy. Planetary gears represent those credit based economies that share and support sociopolitical identity periphery gears outside the ring gear yet still are attached to drive ring gear need only a socio-political identity shift in order to be fully included in the creditist economic model that represent other economies (countries) that still see themselves as in control of there own economy yet function under the influence of the controllers of the Creditist economy and have almost limitless have access to credit/capital investments. Satellite gears = semi-periphery not directly attached to the ring gear core Creditist
18

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economy more than just to supply that economy with labor and raw material needed to produce products from which profit can be gained. (3) How Independent Capitalist Markets Operate and Co-existed in the World Economy. Loosely connected free economies operate at levels of production and consumption that could be achieved with little or no use of credit but are dependant on real capital.

Figure 3. Past Capitalist Global Economy as it functioned. In the past, small economic systems even those not capitalist were able to function in a world economy; each had its own means of holding reserve labor value inside itself for use as national (economic) power. Though perhaps not as efficient, these older economic models allowed for a smaller focus on trade, workers, and production. This

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independence created the almost universal appeal of capitalism. A set of gears much like a power train or a ship-power driving it from a source (labor/production/consumption) propels the economy forward through history. (4) The Number Machines: Credit collecting cogs removing excess credit value for use in world credit markets are powered by the world consumer markets and their growing debt. For the future inside the ICCs ring gear, all value is controlled and valued by the ICC and real growth and real change are not possible. Only a perceived change that is little more than a change of position in the completely controlled economic environment is possible.

Figure 4: (A&B) Predicted Global Economic Functionality. In this model, we see that all economies function outside the core economy. This core economy is not capitalism but a thing that will be referred to as Creditism. In this model, all labor reserves are only seen as a credit value. Labor, production, commodities, and consumption are realized in the form of credit value, and all exchange of compensation

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is realized as a form of credit. There is no money (as such) but only a personal credit value. The worth of this personal credit value can be adjusted instantly by those who control the comparative values of credit markets the ICC. Although all workers will be living at the same level (in reality), the perception that they have the ability to succeed must still be installed into their thinking in order for this stage to begin. Once fully in place, an economic environment in which all production, consumption, and so on, is fully monitored would allow for nothing to be gathered or created that is not fully supported and authorized by the creditist state (as placed by the ICC.) It is in this world that our childrens children will live; at the end of this century, the present credit economy will bring about a world direr than that envisioned in George Orwells novel, 1984. Group behavior as described in Lawlers works allow (have noted) uneven reciprocity, even to rates lower than forty percent is acceptable in a human society. It is this willingness to accept less than equal reciprocity that has allowed this economic condition to exist and to grow into what it is today.

The ring gear ICC Creditist economy is now fully realized. All economic functions of all nations, countries, pseudo-economic systems (all other economic systems are by this time defunct) are serving only as gears inside this totally controlling ring gear that is Creditism. In this final economic scenario, China floats its currency, credit-elitist ICC gains influence and control over all governmental systems, even that last free large modern economy of the northern hemisphere. All industry, investment, consumer, and independent credit markets also become fully integrated into and controlled by the world creditist economy.

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Immanuel Wallerstein, in The Essential Wallerstein (2000), defines the Worldsystem: simply a unit with a single division of labor and multiple cultural systems (75). However, in todays world economy, labor instead of working as an important part of the capitalism/world-economy has become little more than a pool of no longer needed beasts of burden. If the themes expressed in The Tendency of the Rate of Profit to Fall in the United States (Dumenil, Glick, and Rangel) are correct, then why does the ideal capital persist even though most agree that the capital/consumer markets reached their zenith in the 1970s? The ICC has found a way to make profit without labor or even a product. For while it does show what was going on in the economys M-1 and M-2 money supplies, its model does not take into account the profitability of credit and its M-3 creations.19 It is right about the rate of consumerism; it is right that more profits could not be gathered because we were limited by how much we could buy, but it left out the M-3 creation of debt interest! More and more credit-value is created by credit alone. Consumer buying is secondary to profit. Even production (real) and labor are unimportant. Credit interest is where the real values are being created and accumulated. M-3 money supply is unreal, worthless but for the value, we let it have. Labor, or each isolated labor pool, competes with each other and all others in this worldwide group of proletariat for lower and lower amounts of monetary compensation and fewer benefits including but not limited to health, insurances, and retirements. In this case, Wallerstein seems to suggest, This is kind of like marginal as none of the semi-brogans
19

M-1 money supplies represents hard money in the form of gold, silver, or other hard tangible labor reserve representation. M-2 money supplies represents representations of hard value representatives credit voucher backed by hard deposit or paper money/checks supported by collaterals or deposits in a central banking system of a trust of some form. M-3 money supplies represents a credit note that has no value other than an associative value (worth only as much so someone is willing to give you for it). This type of money in reality represents a debt responsibility of the issuer and not a value in position of the owner.

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tries to stabilize the situation.20 Wallerstein thinks that this approach is just reification and cannot account for an understanding of historical evolution. For Wallerstein, there is only one economic system. Nevertheless, that kind of thinking is now more than thirty years behind the true condition of the real world economy, which is Creditism. The replacement of capital in the wars for dominant economic policies with the expansion and ever more pervasive credit market economy was so unheralded that many researchers did not notice the shift occurred. Researchers like S. Bichler and J. Nitzan, continue to look for answers to the continuation of buy-to-build ratios growth of 3% per annum and cooperate earnings per share (EPS); increases/wage rates for the most part remain stagnant and do not realize the exponentially expanding credit markets, allowing for ever greater numbers of productive and economic growth to place positive indicators into an overextended credit market like the one in the United States. In our markets the average debt of the adult American consumer (what ever that means) is one hundred thousand dollars, and the average credit card debt carried and maintained by these self-same consumers is more than eight thousand dollars. The expansions of credit markets replacing real productivity in economies can be readily seen in new emerging credit markets such as that of Turkey. In the early 1980s, less than 2% of the GDP of that country was created by credit, credit maintained, and credit vehicles. Today, the credit markets and the banking systems create more than 25% of the nations GDP. Production, wage rates, and the creation of new jobs remain stagnant. Later in Wallersteins works, Wallerstein states, We must start, instead, with how one single division of labor exists. DOL: Economic actors operate on some assumption []. That the totality of their essential needs of sustenance, protection, and pleasure will
20

Wallerstein (The Essential Wallerstein), 75.

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be met over a reasonable time-span by a combination of their own productive activities and exchange in some form.21 Again, there seems to be an assumption that the conditions of our world labor force is of some concern. In the case of a creditist economy, neither labor nor commodities play that large of a part in the economic condition of countries or the world systems culture. Greater than 50% of the western worlds GDP comes from (in some form) credit vehicles, and it is an ever growing credit economy with a product of M-3 money (credit values) produced in the forms of not only loans, but re-loans, re-financings, and decapitalizing all aspects of industry and government. This is done by removing the capital wealth of a system in way such as was facilitated by hostile takeovers and the selling off of pension, retirement, and capital assets in the 80s and 90s and the use of the Social Security accounts in the United States such as the use of forced workers savings in the Social Security System in the 80s that continues to todays governmental policies.

What May Follow There are only three visions of the future indicated by present socio-economic conditions. The workers, all workers, see through the fog of greed, consumerism, to doism, and vulgar political propaganda and rise up against the ICC and create a world of trade within the created/controlled creditist economy. This would set value for labor between the forces producing the commodities being traded and not by an outside controller who does nothing other than profit from the market; for this controller contributes nothing of real value. The newly created economic model will be similar to an economic democracy. An Economy in which each participant in the economy will not

21

Wallerstein (The Essential Wallerstein), 82.

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necessarily have the same thing, but will have something that something necessary for life in our shared human environment. This may not appeal to the masses and will most likely only come about after a brief stint of total anarchy as the set world credit market collapses and is a clear choice over the second future of our world. In the second future, we, the proletariat (labor/human), are seen as little more than chattel used in everyway to satisfy the desire, wants, and demands of those few in power, those who have access to the vast accumulated credit values realized from credit profits, credit maintained, and debt. In this world, all things are controlled, and reality changes daily. I do not need to rewrite this kind of world, for this world will be worse than that described in 1984 which is itself a nightmare. What is worse, we, the citizens of this planet, are already so far down the road that leads to this result (abject control) that we may not be able to halt the decline of the race of man. Untenable levels of debt will effectyly redirect larger and larger portions of reviews, profits, and wages towards the maintainance of interest payments alone; at this point only the forgivness of debt at all levels will restart the failed credit expansion economy. If this is truly the case, then it is the opinion of this watcher of the human society that we search for, find, and enjoy what pleasures we may for the time will come when only Hell waits in our dreams and oppression in our waking hours. For those who are gathers ever-greater levels of credit value will continue to refuse to share with the creators of this associate wealth the fruits of their labors. The continued militarization of the worlds most powerful nations, invasive and inclusive state monitoring systems, and the installation of first regional then global currency as a way to control wealth value and the arbitrage associate with value disparities. In so many words we will have allowed the putting into place of, a Military Enforced Economic Fascism.

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Lastly, that the huge economic and consumer engine yet untapped, China, in its near debt free condition both in government and population, will assert its position as the sole intact still free-developing culture. The fact that both the population and the government of China are debt free allows it to function freely without the damage and control by the creditist economy that has not only fettered the rest of the developed countries of the world and their populations. However, it also makes it necessary to continue this extreme desire for credit value accumulations and expansion for all those countries and populations with less political and military might to function as serfs under the rule of the ICC. As the cultural aspects and social attributes which represent what is the Null Society condition of mainstream China (that construct said to represent Chinese cultural / societal norms) gain in power, strength, and influences the field of power of that identity (Chinese Iconoclastic Identity) will supplant that of the old Anglo dominated credit expansion world systems model with a new global economic model of its own.

(2006)As such China has, as predicted in Creditism - Global Credit Economy (Morales 2004) has floated it currency; saving the Creditist Economies of the United States from its near collapse as Credit Expansion approached its end and moving the Limits of Credit economy some 10 years into the future. The reaction of speculative Credit expansion economy reaching its limits (Globally) will be very much like the crash of the speculative capital markets of the last 1920s (internationally). The Credit Expansion necessary for a Creditist economy is now collapsing around us. In Creditism or the our current Global Credit Economy it is not only absolutely necessary to have it realized continued levels of Credit Expansion; any lack in this expansion (regardless of it reaching

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the space or limit of debt increase or created by the inability of debtor to pay the required debt maintenance payment while taking on greater levels of debt) will cause it to become unstable to the point of dysfunction.

Bibliography Adorno & Horkheimer. The Culture Industry: Enlightenment as Mass Deception. New York: Herder and Herder, 1976.

_____. Dialectic of Enlightenment. John Cumming, trs. New York: Herder and Herder, 1976.

Baudrillard, Jean. The Consumer Society Reader: The Ideological Genesis of Needs. New York: New York Press, 2000.

Birhler, Shimshon & Jonathan Nitzan. Dominate Capital and the New Wars, forthcoming in Journal of World Systems Research 10 (July 2, 1976).

Butler, Joseph. Private conversations. February 1999 June 2005.

Cook, D. The Culture Industry Reconsidered: Further Thoughts by Adorno on the Nature of the Culture Industry. Lanham: Rowman and Littlefield, 1966. [Reprinted as The Culture Industry Revisited: Theodor W. Adorno on Mass Culture. Lanham, MD: Rowman and Littlefield, 1996.]

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Douglas, D. H. The Control and Distribution of Production. London: The English Review, 1921.

_____. Economic Democracy, Credit Power, and Democracy. Suffolk: Bloomfield, 1974.

_____. The Monopoly of Credit Economic Democracy, Credit Power and Democracy. Suffolk: Bloomfield, 1979.

_____. Social Credit. Suffolk: Bloomfield, 1979.

_____. Warning Democracy. Suffolk: Bloomfield, 1974.

Durkheim, Emile. The Division of Labor in Society. Macmillan: New York, New York, 1984 (1893). Dumenil, Gerard, Mark Glick, & Jose Rangel. The Tendency of the Rate of Profit to Fall in the United States. Paris: Cepremap-ens, 1999.

Goffman, Erving. Interaction Ritual. New York: Pantheon, 1967.

_____. The Presentation of Self in Everyday Life. Garden City, NJ: Doubleday, 1959.

_____. Stigma. Prentice-Hall: Englewood Cliffs, NJ: Englewood Cliffs, 1963.

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Gottlieb, Roger. Marxism: 1844-1990. Routledge: New York, 1992.

Hall, Stuart. Lectures. Oxford, 1997.

Harvey, David. The Limits to Capital. Chicago: Basil Blackwell, 1982

_____. The New Imperialism. Oxford: Oxford University Press, 1982.

_____. Space of Capital. New York: Routledge, 2001.

Hebdige, Dick. Subculture: The Meaning of Style. New York: Methuen, 1979.

Keppler, Gretta. The Fictitious Economy. Outstanding Research Paper, American Sociological Association Conference, UCLA, Los Angeles, 2004.

Kuhn, Thomas. The Structure of Science Revolutions. Chicago: The University of Chicago Press, 1996.

Lukacs, George. The Marxism of Rosa Luxemburg in History and Class Consciousness. London: Merlin Press, 1968.

Marcuse, Herbert. One Dimensional Man. . Paul Kegan, London: Routledge, 1964.

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Marx. Karl. Capital. (volume I) New York: International Press, 1967.

Morales, Gregory T. Creating Creditism. Pacific Sociological Association, Portland, 2005.

_____. Creditism Global Credit Economy. Global Studies Association Conference, Brandeis University, Waltham, MA, 2004.

_____. Creditist Economy. Global Studies Association Conference, Brandeis University, Waltham, MA, 2004.

_____. Global Arbitrage Somewhere between Fact and Fiction California Sociological Association, Riverside, University of California, 2006.

_____. Our Null Society: Creditism Theoretical Social Model. , American Sociological Association, San Francisco, 2004.

Nietzsche, Frederick. Unzeitgemasse Betrachtungen, Werke, Vol. I. Leipzig: Der Weltkrieg , 1917.

Sweezy, Paul. Theory o f Capitalist Development. NewYork: Monthly Review Press, 1964.

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Torres, Pereira. Capitalismo y Democraca.Buenos Aires: Not Listed, 1968,

Tucker, Robert. The Marx-Engels Reader, 2nd Edition. New York: W.W. Norton, 1978.

Vilar, Pierre. A History of Gold and Money 1450 1920. London: NLB, 1976.

Wallerstein, Immanuel. The Capitalist World-Economy. Cambridge: Maison des Sciences de lHomme and Cambridge University Press, 1979.

_____. The Essential Wallerstein. Immanuel Wallerstein, first edition. New York: The New York Press, 2000.

White, Curtis. The Middle Mind: Why Americans Dont Think for Themselves. San Francisco: Harper, 2003.

http://www.socialstudieshelp.com/Eco_indicators.htm Accessed August 7, 2006.

Appendix Definitions of Terms International Credit Consortium (ICC) and the Imperialist Credit Culture (ICC): These terms are used to represent the same cultural ideology that is embodied in the functionality of creditism and the world credit economy (WCE). They are, therefore, freely

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interchangeable, but for effect as to how they are being used in each perspective case in the word represented by the acronym is changed. Creditism is a System of non-culture, to which one might even concede a certain unity of style if it really made any sense to speak of stylized barbarity.22

Creditism: the floating of major world currency markets, de-capitalization of companies, corporations, retirement accounts, and the formation of the world banking system has removed sovereignty from the once free nations of the world, and under stresses of debt and credit maintenance, we have stopped the development of the human race and have arrested the very hallmarks of civilization.

Sword of Damocles: used as a metaphor for the genius of producing a product and gathering profits from a non-commodity. In this case, the non-commodity is credit. Credit debt allows not only for the creation of extended credit values (a value attached and estimated from conception of an extension of credit, i.e., loans or some other credit vehicle) and may to an existing level of credit value. The projected end credit value attached in attributed to the idea of a capital asset or earning potential of the credit victim can by used to create even great levels of indebtedness by creating in the credit victims mind the illusion of wealth when only greater level of indentured servitude is realized. The double edge sword in this care is the seemingly positive gain of access to ever-growing levels of credit-value extensions while also accruing ever-greater levels of indebtedness. A sword that cuts both ways.

22

Nietzsche, 187.

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Ideal Value: unlike the use of this term by Marcuse, consumers must be willing to associate themselves with the item. Now consumers, for the most part, have no real independent developed self. Instead, the average adult consumer of the United States gains identification and image of self by association with the attached cultural value of the products themselves. E.g., the large power gas consumer, the SUV.

Supply and Demand, Conflict theory: the demand for products peaked long ago. There is a limit to capital, and the rate of profits has a tendency to decline over time. This has been commented on by many authors. That is what makes credit the perfect product or rather non-product. It is created out of nothing, little if any physical labor is expended in any level of its production or transportation to market, and the very act of having access to it creates an environment in which the compensation paid to all labor is recovered in the from of debt maintenance payment to which labor itself willingly signs contracts to access.

Real American or Lexis and the Olive Tree: it is my understanding that this text suggests in a rather interesting way that all problems in the world concerning cultural, military, and economic conflicts would be avoided if those silly less developed (powerful) countries and nations would simply adopt the ideology (Creditism) common to most of the western world. Thinking such as this is what leads some to interpret such works as Goffmans Presentation of Self in Everyday Life as suggesting that all members of a society have the ability to understand and interpret all cultural indicators of action, wealth, power, and other nuances of perception regardless of their individual cultural and cultural values accumulations. Therefore, each member in a society deserves to be treated by the way that

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each wants to be treated due to the fact that each has the complete and total understanding of how all other members of what society at large holds to be normal and correct in every situation/event. This narrow interpretation serves only to preserve the idea of the cultural elitists having the right to privilege. This is seen clearly in Goffmans other works, Stigma and Interaction Ritual and also is supported in part in Dick Hebdiges Subculture: The Meaning of Style.

Marcuses One Dimensional Man: In this case, I use the title to describe the simple consumer creature we have become, limited in thought and action by fetters placed upon ourselves in the form debt.

After much investigation, it seemed to this observer that most of the research and work in social economics have noted the disparity of wage non-growth with the ever-increasing levels of profit growth of large multi-national corporations. If real product and real consumption were factors in these capital economic models and research, then wages would have to increase, as the consumers would have to realize greater amounts of income to acquire and to relieve the stresses of ever-growing levels of production and supply. But with the growth being focused in the creating and expanding M-3 money markets, there is no need to increase the buying power of labor/proletariat/consumer or to increase their access to credit and therefore not only create an ability for consumption thus recouping wages but reclaiming those wages in the form of debt-maintenance payments or interest payments.

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Today last sustained Credit Expansion area (housing) is crashing:

Amid all the confusion over subprime lending, it's worth bringing one fact to the fore: Alan Greenspan was recommending adjustable-rate mortgages in February 2004 -- just as short-term rates were making their lows. Then, in a speech on April 8, 2005, he extolled subprime lending:

"With these advances in technology, lenders have taken advantage of credit-scoring models and other techniques for efficiently extending credit to a broader spectrum of consumers. . . . As we reflect on the evolution of consumer credit in the United States, we must conclude that innovation and structural change in the financial services industry have been critical in providing expanded access to credit for the vast majority of consumers, including those of limited means. . . . This fact underscores the importance of our roles as policymakers, researchers, bankers and consumer advocates in fostering constructive innovation that is both responsive to market demand and beneficial to consumers." By Bill Fleckenstein

http://articles.moneycentral.msn.com/Investing/ContrarianChronicles/BlameGreenspanFor ThisBubbleToo.aspx