We Need To Update Our Economic Philosophy!


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! http://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.

avatarDon Swenson - Kingdom Economics posted Sunday, October 14th, 2012.

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