10.

Re-educating the Monetary and economic system

Disparity in wealth distribution (DWD) continues to be a big blow to the world economy. On one
hand there are many people (over 2 billion) in the world who are not even earning a dollar per
day, on the other hand there are people (though less than handful, less than 1%) are making over
100 million US $/day. Such disgraceful disparity in money distribution is one of the major cause of
world's economic crisis, poverty, and violation of human rights, wars and most importantly the root
cause of the four evils of xenophobia. The four evils of xenophobia are nationalism (jingoism),
racism, ethnocentrism and religionism. All these four evils are the precursors of impending WW III
of 21st century.

When a small sector (less than 1%) of world’s population controls more than 99% of world’s
economy, disasters are bound to happen. For example,

If few people of a nation become the major contributor of its economy, it also becomes the
downfall of that country. If that country happen to be the world’s biggest economy, the whole
suffers when its economy takes the downwards trend.

Those “Few Elites of Wealthy Status” (FEWS) of such nation also create xenophobia in the world
by fueling the sentiments of nationalism (jingoism) in disguise of the farce of democracy. Usually
in such country there are only two main parties with similar agenda. In other words, there is only
one party with different names. Both these parties fool people into believing that they are working
for the people when in fact they are working for themselves.

The FEWS also control the social system, legal system, political system, economy, media,
education, entertainment and every major industry of that country. Their fundamental role is to
create wealth for themselves and control the populace by brainwashing them (through media and
education) into developing a patriotic sentiment that ultimately creates a force (police, military etc)
that defends only the FEWS in disguise of letting the populace believe that they are defending
their beloved country. Such patriotism is the basis of xenophobia created by FEWS.

If these FEWS are part of a particular race, they may agitate the sentiment of racism among its
populace by defining its race being the supreme, chosen or elite. This is another way of
controlling and exploiting the mind of the people and thereby spreading xenophobia. The sole
purpose of such movement is to enhance the power of FEWS.

Similarly, if these FEWS belong to a particular ethnicity, they would invariably inculcate and
indoctrinate their ethnic superiority by spreading propagandas that ultimately feed xenophobe
sentiments.

These FEWS if happened to be the elites belonging to a particular religion, they would conduct
their practices in a way that would either glorify their own religion or undermine other religions. In
other word they would practice religionism in disguise of religion. Religionism is one of the four
evils that are roots of xenophobia.

Disparity in wealth distribution (DWD) is not only an undesirable effect of market economy, it is
also the cause of it; because it contributes to few other social problems that affect market
economy like a malignant cancer. One of the most evil one is greed. Greed is like a two edged
sword that embodies both cause and effect of DWD.

In other words, one can safely conclude that DWD and greed go hand in hand. FEWS are a part
of this grand scheme. These FEWS are ruthless, merciless and inhumane. They work on one
simple principle; i.e. control, power and money (wealth hoarding). Wealth brings power and
control which is an essential part of their belief. It means everything to them while humanity or
human life means nothing.
Let us look at the following few examples of FFWS.

Many industries (FFWS) are making profit at the expense of human lives. Following are few
examples.

1. Tobacco industry is known to be the greatest culprit of such greed. In spite of the fact that
tobacco use has caused millions of death through lung cancer and through many other smoke
related illnesses, tobacco industry continues to flourish. It is supported by many countries and is
the biggest source of revenue in third world countries.

2. Pharmaceutical industry is one of the most prolific in manufacturing its products that are not
only dangerous to the pocket of patients but also dangerous to their lives. Industry’s only interest
is profit (greed) not safety of human life.

3. Arms manufacturing and sale Industry (AMSI) is one industry that is the biggest slap on the
face of humanity. Its greed has no end. Everyone knows that arms have only one purpose i.e.
injudicious killings of innocent humans (even infants and children). Yet AMSI continues to
manufacture arms and continues to ship those to countries at an unimaginable profit.
Unfortunately, their biggest buyers are the developing nations who can hardly feed themselves let
alone have the affordability to buy the sophisticated weapons.

4. Media has evolved in our time to the point that whatever we hear is not what we want to hear
but what FEWS want us to hear. Media is overwhelmingly controlled by FEWS. Therefore, the
interest of FEWS always precedes the interest of the public in general. For example, daily news
casting on television these days appears to be an infomercial played by TV stations owned by
FEWS (FOX News Channel being a typical example of an infomercial channel). CNN, BBC follow
the same but to a much lesser extent. It is like watching a documentary carefully planned by the
FEWS. Sensationalism is the key word and as long as it brings profit everything goes at the
expense of humane feelings and humanity.

5. Entertainment Industry has the power to influence populace through its glamorous effect that
delivers a powerful message if it is personified by a favorite movie star or by a sport hero.
Violence has become the greatest entertainment of our time. It is seen on the big screen, TV; and
even on the video games and cartoons which are usually watched by the children). It is all a
conspiracy of the FEWS who own the entertainment industry and are behind the “Violence” being
depicted so graphically. It has become the main theme of almost all the movies these days. Since
violent movies bring big profit, it is now customary to make all movies with the violence being the
main focus.

All scientific studies have proven the fact that watching violence on screen, video games and
cartoons helps children to exploit the aggressive instinct to the verge of violence. Children are not
able to distinguish fantasy from reality distinctly until the age of ten and sometimes not until the
age of 18 – 21. Children recruited by the violence on screen grow up to exhibit violent behavior in
every walk of life.

There are many more industries that spring up like mush rooms everyday. Their main purpose is
greed and total disregard for humanity. Since their relevance to this article is remote, they are not
being discussed in detail.

---------------------------------

Q. How did we get into this economical mess in the first place?
A. The answer lies in a corrupt economic system which does not provide justly to billions of
humans on this planet. It only supports a few selfish and greedy billionaires.

What is an economic system?

An economic system is a system that involves the production, distribution and consumption of
goods and services in a particular society. It is the method used by society to produce and
distribute goods and services. Examples of contemporary economic systems include capitalist
systems, socialist systems, and mixed economies.

An economic system can be considered a part of the social system and hierarchically equal to the
legal system, political system, cultural, etc. Basic types Economic systems are:

1. Market economy (the basis for several "hands off" systems, such as capitalism).

A market economy is a social system based on the division of labor in which the prices of goods
and services are determined in a free price system set by supply and demand.

2. Planned economy.

A planned economy is one in which a central government determines the price of goods and
services using a fixed price system. This is the basis for several "hands on" systems, such as
socialism, or a command economy.

3. Mixed economy

A mixed economy is defined as an economy where the price system is not entirely free but under
some government control that is not extensive enough to constitute a planned economy. In other
words, it is a compromised economic system that incorporates some aspects of the market
approach as well as some aspects of the planned approach.

In the real world, market economies do not exist in pure form, as societies and governments
regulate them to varying degrees rather than allow self-regulation by market forces. This does not
preclude an economy from having socialist attributes opposed to a laissez-faire system (i.e. a
system that allows events to take their own course).

Let us describe these economies in more detail.

1. Market economy

This is the worst form of economy ever developed in history. It caters only to the needs of the
FEWS’ greed while the majority either gets burnt by it or gets nothing out of it. It is based on the
pyramid scheme. Ironically pyramid schemes are either banned or are illegal in most countries.
However these schemes thrive substantially and are a lucrative business (for the FEWS) in many
countries in disguise of capitalism.

What is a pyramid scheme?

A pyramid scheme is a fraudulent investing plan that has unfortunately cost many people
worldwide their hard-earned savings. The concept behind the pyramid scheme is simple and
should be easy to identify; however, it is often presented to potential investors in a disguised or
completely altered form.

How does it work?

As its name indicates, the pyramid scheme is structured like a pyramid. It starts with one person -
the initial recruiter (a typical FEWS) - who is on top, at the apex of the pyramid. This person
recruits a second person, who is required to "invest" $100 for a product which either does not
exist or is not worth the money. In order to make his or her money back, the new recruit must
recruit more people under him or her, each of whom will also have to invest $100. If the recruit
gets 10 more people to invest, this person will make $900 with just a $100 investment.

The 10 new people become recruiters and each one is in turn required to enlist an additional 10
people, resulting in a total of 100 more people. Each of those 100 new recruits is also obligated to
pay $100 to the person who recruited him or her; recruiters get a profit of all of the money
received minus the initial $100 paid to the person who recruited them. The process continues
until the base of the pyramid is no longer strong enough to support the upper structure (meaning
there are no more recruits).

The Fraud

The problem is that the scheme (like market economy) cannot go on forever because there are a
finite number of people who can join the scheme (even if all the people in the world join). People
are deceived into believing that by giving money they will make more money ("with an investment
of just $100, you will receive $900 in return"). The only person who gets the best return out of all
this fraudulent activity of selling his product is the initial investor (FEWS). The actual product is
not worth the money and is ordinarily un-sellable in the common market place. The rest of the
investors who did all the hard work get either very little or nothing at all.

The fraud lies in the fact that it is impossible for the cycle to sustain itself, so people will lose their
money somewhere down the line. Those who are most vulnerable are those towards the bottom
of the pyramid, where it becomes impossible to recruit the number of people required to pay off
the previous layer of recruiters. As mentioned earlier, this kind of fraud is illegal in the Unites
States and most countries throughout the world. One wonders why then these countries let this
fraud prosper in disguise of capitalism? It is estimated that 90% of people who get involved in a
pyramid scheme (just like in market economy) will lose their money.

Inherent value of “Products and services” in Market economy vs. pyramid scheme

1. Unlike the pyramid scheme, the products in market economy bear some substance and are not
utterly useless. In other words, the product or service of market economy actually has some
inherent good market value. As a recruit, you can make a profit from the sales of the product or
service which is worth the money for the consumer. In pyramid scheme, consumer is totally
ripped off as he buys a product or service which is of poor quality and of no value whatsoever.
Nevertheless, there remains some potential for abuse in the hands of FEWS who either sell the
product in disguise of a popularly marketed name such as KFC (Kentucky Fried Chicken) for KFC
(Kelly Fried Chicken) or buying a popular name such as Toyota and not providing the product as
good as the original owner of Toyota.

2. Unlike Pyramid scheme, in market economy you don't necessarily have to recruit more sales
to people below you. And while you may be encouraged to recruit other salespeople whose sales
would give you more profit, you can stick to just selling the product directly to the consumer if you
choose. Since there is no central control by any authorized agency to evaluate the product, the
corrupt FEWS can easily manipulate and abuse the system.

3. Unlike pyramid scheme, market economy not only has its purposeful investments and its many
advantages, it also has the most vital element of inspiration for innovation and creation of
competitive products which has always been the hallmark of market economy. However, the
potential for exploitation and abuse in the hands of greedy FEWS puts it on a very slippery slope.
It is the later part (the greedy and corrupt FEWS) that makes market economy just as much
fraudulent as the pyramid scheme.

In short, there is inherent good and bad in market economy. As long as greed and corruption
does not take over the spirit of market economy, it is undoubtedly a system worth adopting. But
the FEWS have a mentality of having it all; resulting in DWD (a disparity in wealth distribution) to
such an extant that eventually the populace becomes short chained like the victims of a pyramid
scheme and gets burnt. In other words, the majority (99.9%) ultimately have nothing, while the
FEWS (less than 1%) own everything.

Since the hub and the backbone of the market economy is capitalism, it is important to discuss
this economic system (capitalism) in detail.

----------------------------------------------------------

Capitalism

Capitalism is an economic system in which wealth, and the means of producing wealth, are
privately owned and controlled, rather than state-owned and controlled. Through capitalism, the
land, labor, and capital are owned, operated, and traded by private individuals or corporations,
and investments, distribution, income, production, pricing and supply of goods, commodities and
services are determined by voluntary private decision in a market economy. A distinguishing
feature of capitalism is that each person owns his or her own labor and therefore is allowed to sell
the use of it to others. In a "capitalist state", rights of private property ownership are protected by
the rule of law, though there is very limited and sometimes non-existent regulatory framework. In
the modern capitalist states, legislative action is confined to defining and enforcing the basic rules
of the market, though the state have been proven to be ineffectual in implementing it.

Some consider laissez-faire, to be "pure capitalism. Laissez-faire (A French word that means
"leave to do by itself"), signifies minimizing or eliminating state interference in economic affairs
and the competitive process, allowing the free play of supply and demand. Laissez-faire
capitalism has never existed in practice.

The central axiom of capitalism is that the best allocation of resources is achieved through
consumers having free choice, and producers responding accordingly to meet collective
consumer demand. In most cases consumers' needs are decided by the producers who design a
system of credit through which consumers are lured to buy a product which may not be worth the
money, as seen in pyramid schemes. Although producers and consumers must act rationally in
any society for their own good, the irrational actions are said to be more readily apparent in a
capitalist society. The present economic crisis of 2008 is a typical example of irrational actions.

State monopoly capitalism

In capitalism, big business, having achieved a monopoly or cartel position in most markets of
importance, fuses with the government apparatus. A kind of financial oligarchy {(i.e. control by
politically powerful families (FEWS) whose children are heavily conditioned and mentored to be
heirs of the power of the oligarchy}, or conglomerate, therefore, results in a beneficial institution
for the FEWS, whereby government officials aim to help and provide the social and legal
framework within which giant corporations (FEWS) can operate most effectively.

In practice, however, the government bows to these giant (FEWS) corporations. The system is so
corrupt that when these giant corporations become bankrupt through their greedy and irrational
behavior, the government chips in to bail them out. In other words the government aids and
rewards the corrupt and bad behavior of these giant cartels.

State Monopoly Capitalism is a close partnership between big business and government, and it is
argued that the aim is to integrate labor-unions completely in that partnership. The facts speak
the opposite. Not only the spirit of free enterprise (free competition) evaporates by this close
partnership between big business and government, the labor-union protection system also
disintegrates. In other words, the government in disguise of helping the labor-union, it helps the
big businesses.

On an international level, ever since monopoly capital took over the world, it has kept greater part
of humanity in poverty, dividing all the profits among the group (FEWS) of the most powerful
industrial countries. The third world countries have suffered badly and have experienced the
extreme poverty levels.

Globalization

Today, on the basis of the trends of the past that had bolstered capitalism, has taken a new stand
on the argument that capitalism should now be viewed globally as a truly New Economic World
System or NEWS (i.e. a World government or a political body that would make, interpret and
enforce international monetary laws). However, other thinkers argue that globalization, even in its
quantitative degree, is no greater new than during its earlier periods of capitalist trade (i.e. during
colonial times). The roots of globalization can be traced back to the imperialism of the early 20th
century. Imperialistic policies promoted the spread of capitalistic principles, and the doors of trade
stayed open in foreign countries (globalization) even after imperialism had come to an end.
After the abandonment of the Bretton Woods system (That created the establishment of the IMF
and the IBRD and IDA, now the World Bank), IMF and World Bank still remain powerful forces in
the world economy. A major point of common ground at the Bretton Woods Conference was the
goal to avoid a recurrence of the closed markets and economic warfare that had characterized
the 1930s. Thus, negotiators at Bretton Woods also agreed that there was a need for an
institutional forum for international cooperation on monetary matters. .As a result of the
establishment of agreed upon structures and rules of international economic interaction, conflict
over economic issues was minimized, and the significance of the economic aspect of
international relations seemed to recede temporarily.

The strict state control of foreign exchange rates, the total value of transactions in foreign
exchange was estimated to be at least twenty times greater than that of all foreign movements of
goods and services (EB). The internationalization of finance, became beyond the reach of state
control and combined with the growing ease with which large corporations have been able to
relocate their operations to low-wage states, it has posed the question of not only of the 'eclipse'
of state sovereignty, but also of helping to enhance the disparity in the distribution of wealth
(DDW), arising from the growing 'globalization' of capital. In other words, just like the national
capitalism, NEWS (globalization) is only good news for the FEWS, whereas for the poor on the
other side of the globe, it is nothing but a bad news, since it has fueled the poverty to its worst for
them.
Foreign exchange rates are the greatest sufferers in third world countries. Large corporations
from industrial world have been able to relocate their operations to low-wage states (third world
countries) have not only given them (FEWS) the advantage of labor cost but also the windfall of
foreign exchange rates. This is the worst form of exploitation of third world country's labor
resources. The only way to solve this problem is to give wages in a universal currency (if such
currency exists). Globalization, in essence, therefore, is impractical unless there is a universal
global currency.

Inheritance Inequality or disparity in Inheritance distribution (DID)

Inheritance Inequality or disparity in Inheritance distribution (DID) has done a great disservice to
humanity in history. As someone said,

“DID really ‘did’ it.”

The distribution of inherited wealth in the world is drastically unequal. The majority receive little
while only a small number, less the 1% (FEWS) inherit extremely large amounts. This creates
discrimination that approaches to its highest form in areas where xenophobia resides (i.e.
nationalism, racism, ethnocentrism and religionism). Such unfair economic discrimination and
stratification in countries with the greatest disparities is only seen in capitalist countries. Most
sociologists would agree that the policies that create socioeconomic disparities in various
communities have a direct impact on human relationships in relation to race, religion, nationality
and ethnicity.

Depending on one’s race, one inherits an inevitable amount of privilege or disadvantage at the
time of their birth. Certain races are disadvantaged for number of reasons. For example, Blacks,
Hispanics and other minorities races in a predominantly white country are disadvantaged with
respect to financial and human capital resources, more specifically, lower educational attainment,
income, inheritances, and great concentrations in lower-skilled occupations. Additionally, due to
employment discrimination and residential segregation, minority households “have historically
been denied the opportunity to accumulate wealth” and thus, acquire inheritance. This inequality
and disparity continues from generation to generation due to “DID”.

Social Stratification

For practical purpose in capitalist countries there are only two social strata or social classes, an
upper class and a lower working class. The upper class holds the capital while the working class
(as the name implies) works for it. The transfers of bulk estates at the time of death of the
testators of upper class (FEWS), results in significant economic advantage to their children. The
degree to which economic status and inheritance is transmitted across generations, determines
one’s life chances in society. Although many have linked one’s social origins and educational
attainment to life chances and opportunities, education alone cannot serve as the most influential
predictor of economic mobility. Individuals with a substantial amount of wealth and inheritance
(FEWS) often intermarry with others of the same social class in order to protect their wealth and
ensure the continuous transmission of inheritance across generations; thus perpetuating a cycle
of privilege. In turn it promotes the oppression of lower-class individuals in terms of the social
hierarchy and system of stratification.

Nations with the highest income and wealth inequalities DWD (disparity in wealth distribution) and
DID (disparity in inheritance distribution) often have the highest rates of crimes, suicides,
homicide and disease (such as obesity, diabetes, and hypertension). For this reason, it is clear
that when social and economic inequalities centered on inheritance (DID) are perpetuated by
major social institutions such as ethnicity, race, nationality of origin and religion, etc. When these
differences in life opportunities are transmitted like an inheritable cancer from one generation to
succeeding generation, the vicious circle of class difference and DWD continues. Consequently
this inequality (DWD) creates all forms of evils of xenophobia that is related to high crime and
diseases.

Will continue....

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syedshahidmd@yahoo.com.au