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Our Economic Philosophy needs to be Updated for a New Global Society!

October 13, 2012

Let’s review and compare the first principles of Classical Capitalism and our current non-System of Casino Capitalism!

All philosophical Systems are based on core principles which are foundational to the operation of the System. If we briefly review economic history we can identify the Systems of Feudalism (1100 to 1600), then Mercantilism (1600 to 1775), then Classical Capitalism (1776 to 1934), then Welfare Capitalism (1934 to 1973), and finally our current non-System which I’ll call Casino Capitalism (1973 to 2012). Each System has core ideas or principles which make up the philosophy of the System…and which we all try to follow. Let’s review the economic Systems since our founding:

 
 1. Classical Capitalism:  1776 – 1934 are the general dates which most experts would support as the period when this philosophical System ruled the marketplace. Adam Smith and our American Founding Fathers bought into this philosophical System for our political and economic principles after the American Revolution period. Classical Capitalism was based on the idea that ‘material’ wealth would be our goal within economics. Our goal was to create products from our natural resources and then market these products for the consumption by the people. Free market exchanges were promoted within an environment of open competition and decentralized markets. Prices were determined by the private marketplace and our money units were physical units chosen by the marketplace. Values and prices were to be determined based on free negotiations and voluntary exchange. Money was created from a natural resource such as silver and gold (a resource which was scarce and which had perceived value in the minds of the people). And private property and human rights were based on this decentralize model of economics and politics. Then what evolved after this period?

 
 2. Welfare Capitalism (1934 – 1973): This model evolved after the Great Economic Depression which developed after the financial crash of 1929. The new policies of FDR and his surrogates created this model to salvage some elements of Classical Capitalism and then to install a new type of Welfare Society to supposedly prevent another financial crash and depression. All the new entitlement programs were created and installed to promote consumer confidence, trust, and security in this new System. Social Security, Medicare, Pension programs, FDIC insurance, Unemployment programs, etc. were created and promoted to create a foundation for growth, confidence, trust, and progress. A bigger and growing ‘government’ was created so that all these new programs could be installed and maintained. This period is still vibrant and desired but is now collapsing do to our excessive monetary debt, deficits, and foreign borrowing.

 
 3.  Casino Capitalism (1973 – 2012): This model evolved after the closing of the gold window in 1971 by our then President Richard Milhous Nixon. With the abandonment of gold as the foundation for our ‘dollar’ (prior to 1971 our dollar creation was somewhat limited and restrained as foreign nations could convert their excess reserve dollars into our gold at $35/ounce) our politicians and our Central banking system could expand our debt, deficits, and borrowing with no physical  restraints. Money could be created arbitrarily to further our borrowing, credit excesses, and leveraging as our ‘dollar’ was still the reserve currency for the world.
 

Also, key commodities (such as oil and gas) were ‘priced’ in dollars globally allowing the United States to purchase unlimited amounts of energy for their growing economy. All this led to economic and political excesses and egotism (a form of pride) which created the American Empire and our Super-power status for ruling the entire planet. Pride and psychological egotism within our elected elite (from Nixon, Johnson, Clinton, Bush, to Obama) has created our current unsustainable DEBT, DEFICITS, and SUPER-power Status. From a single Nation of revolutionaries (1776) we evolved into an empire of greed, excesses, and pride (2012). American exceptionalism was viewed as part of our national heritage and the entitlement mentality became ingrained within most of our citizens and our elected representatives.

We are now gradually becoming AWARE of this evolutionary process which has allowed this situation to occur. Other Nations and their people’s are also recognizing that past American greed and excess has prevented their growth and equality from emerging globally. This new AWARENESS is creating new tensions and conflicts all around our planet. The Middle East is now in turmoil. Asia desires our economic benefits for their people. China has recognized that their growth and progress is dependent upon a new economic model for their people. And Africa is in turmoil as they now are becoming AWARE that their future requires more natural resources for their people. American has evolved from a friend of humanity to the GREAT SATAN (in the minds of many).

The past economic model (which favored the American hegemony and expansion) is now starting to be questioned and many sense that this model is quite unfair and regressive for our global society. All the American advantages which emerged after the second world war are now being questioned and being viewed as unfair for a global society. Our control of world resources via our dollar as the global reserve currency is being questioned. Why should the United States of America have this monetary advantage and special status? China, Russia, Brazil, Egypt, Libya, and most of Africa all desire a new economic System going forward. The past model of Keynesianism and Western control of finance is being questioned and being viewed by many as outdated and unfair. Where is all this leading as we move into 2013 and beyond?

Many now recognize that a global economic system has emerged and that our global natural resources need to be shared among all 7 billion people on this planet. The 200 plus Nation-State System is much to divisive and archaic for this new world which everyone now recognizes as our future. This means that we NEED a NEW ECONOMIC SYSTEM for this new awareness. Our global internet and instantaneous communication all around our planet appears to be our future. This means that we need to construct a NEW SYSTEM based on principles that everyone can adopt as meaningful and real. Kingdom Economics is my alternative. Under this System, people come first. Money is relegated to the dustbin of history. And the individual reigns supreme globally. Wealth creation will be multiplied many times from our current levels. The principles of our Founding Fathers (life, liberty, and happiness) will be maximized.

 
 Those who understand history and reality will honor the principles of our Creator God as the Supreme Authority over this planet. The material and the spiritual will both emerge as important realms of our reality. All this is possible IF there is a DESIRE for this outcome! NOW is the time to make these meaningful changes for ourselves and for our progeny. That is my missive for today. Enjoy! https://kingdomecon.wordpress.com.
 
P.S. May 4- 5, 2013 (Saturday/Sunday), is a date to record and remember. The first Kingdom Economics Education Forum will be scheduled at the Ritz Carlton Hotel, Dove Mountain, Marana, AZ. 85658. Website: www.ritzcarlton.com/DoveMountain.

Come and discuss our economic, philosophical, and monetary situation. Contact Kingdom Economics by sending an email to: donaldswenson@me.com. . Deadline: February 24, 2013 (to register). Cost (of hotel facilities) will be covered by voluntary donations at the event. Registration is free (pay your own costs of transportation and hotel room). Purpose of Forum and Discussion is educational and to promote awareness of our global monetary/economic problems going forward! Abraham Lincoln said: education is the most important area for anyone to be engaged with. James Garfield said: neither freedom nor justice can be maintained without education.

 
3 Comments leave one →
  1. Jean Pierre permalink
    October 13, 2012 10:06 pm

    That’s a very good article until the last sentences “our guiding principles”. If the society must have an evolution , she also have to make evolution in the word “GOD” . God is us united in everything and everyone , He is making the same evolution as us . Let’s keep the same” guiding principles” ,but let’s use the word “Light or Source or Energy” and we will avoid one more time to update our civil evolution on a too old verbiage who was adapted only for that time! unless that , the 10 commandements or other religious instructions are going to drive us in a new society with multi thousands years formulas, cooked already at all sauces. The adaptation is ready , she demonstrates our attitude to understand that the actual world in his competition limit the human competence , we must cross from the competition to the cooperation , through responsability and trust . If education is the most important thing , she has to be important also in the religious matters what ever the branch . Things are maybe not how we think in others dimensions , If Adam’s theory lose his efficiency , it will be time soon to watch how religions will be ashamed for their attitude .This unvisible power , basis of everything , with no name , doesn’t came from religions ! Who said that human being need intermediaries to access the Light ?She is accessible anywhere, anytime , for each of us without any kind of religion. If it really was , how to find ” liberty , freedom and happyness?”
    (Sorry for the english,) May the Light be with you !

    Like

  2. October 15, 2012 5:43 am

    Dear sir,

    This letter addresses economic issues taking into account examples from India. While applying these ideas to other countries conditions prevailing in that country must be considered then this model has to adopted

    Many a times I have asked some youngsters “How is India?”
    Most of them almost always said India is progressing in many fronts.
    They further said , “Now they have many opportunities to scale!”
    There are many industrialists who also share this view.

    But then almost all of them missed one point
    Our progress in Economic Front!

    • An estimated 400 million people – more than the population of the United States –
    live on less than $1 a day.
    • India also had 828 million people below $2 a day.
    • On this scale Sub-Saharan Africa, the world’s poorest region, is better than India
    • It is surprising , One third of worlds poor live in India.
    • In India today we have 65% population on farms
    • Most of their life is miserable .
    • More than 17,500 farmers a year killed themselves between 2002 and 2006,
    • At least 160,000 farmers have committed suicide since 1997
    • There are only 33 million tax payers in India

    If we think of these statistics we will be convinced, “ It is time for all of us to work for a new India free from all these vagaries”.

    “Change India” should be our new slogan

    To change India Dreams are not enough. We need workable solutions. Throughout the world search is going on for new models.

    There were 32 noble laureates who wrote on , “ how to scale new peaks in economy”. But then they provide incremental benefits under capitalism.
    No more than that!

    The search ends here with the formulation of a new economic theory , Which I call “The Reverse Principle”

    The model itself is simple
    It is the fusion of three concepts!

    It keeps within itself the spirit of co-operative effort: All to work ! All to produce ! All to share
    It keeps the spirit of capitalism: Self sustaining ! Self growing ! Self regeneration !
    It uses the concept of post dated cheque

    The fusion releases economic nuclear power and changes the very life style of every one
    This revolution may make a beginning in India soon!

    Several books are written on this theme

    More on these topics can be seen in webs
    1. http://cosmic-civilizations.com for philosophical issues
    2. http://spin-india2015.com for economic and political ideas

    There are 10 CD’s and several power point presentations that brings out these concepts in a logical manner.

    CD1. Introducing the Basics of new economic model
    CD2. Towards Total Transformation
    CD3. Our Road to New life Styles
    CD4. Our journey to New Life Styles
    CD5. Self Reliant villages of Mahatma Gandhi
    CD6. Corruption gets routed out
    CD7. New Heights in our Life Styles
    CD8..The Greatest of all Plans
    CD9.. Transforming the World Economy
    CD10. New Economic Model for New Age

    These theories have not come out just like that
    I have a dream of India in the year 1965. In 35 years I have developed philosophy of the Unified Vision .
    About 100 articles and several books are brought out on these concepts.

    From 2000 to 2004 I have brought out, “India in My Dreams , Vision 2015”.

    Since then 7 years have passed. During this period I have worked out every detail of this model to the level of bolts and nuts

    The Power point presentation , “It is not a Dream “ brings out the effort that is gone in preparing these theories.

    I have kept most of these power point presentations on top of the home page of the web
    http://spin-india2015.com

    It takes just one hour to read the basics in these power point presentations .
    After going through these basics one can read selected topics for more clarity.
    All your doubts will be cleared.

    Dear sir ! Can we work for this cause together ?

    I eagerly look for your email
    k_meera_sahbu@yahoo.com

    With warm personnel regards

    KETA MEERA SAHEBU

    Like

  3. therooster permalink
    October 15, 2012 4:33 pm

    Real-time is key to our evolutionary changes, IMO. The greatest example of that may be the market driven shift from debt-money to real-time gold-as-money. In this gold monetary paradigm, the USD is not acting as a currency but as a much needed real-time measure for weighted gold payments/liquidity, debt free. This movement is organic, market sriven and bottom-up , as it must be in order for the legacy system (USD) to avoid a sudden collapse. The elite do waht they can at this point ….. they carry the stick.

    Like

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