I'm writing this in the simplest possible terms I can use to describe what I call the vicious cycle of capitalism.
The cycle of CAPITALISM applies to America but it also can be applied to the worlds economies as well.
I want to use the $21 trillion +++ hoarded by wealthy individuals offshore to avoid taxes .. not only Americans are involved - but most are Americans or proxies for americans.
We start off with $1 ... it is a worthless piece of paper unless we can ALL be cnvinced it has value.
What gives that piece of PAPER value is TRUST that behind it stands labor, raw materials and products that are NEEDED.
Please note that important words are capitalized and bold. Also you must read this at least twice to understand what is being written here.
Let me recap at this point:
A piece of WORTHLESS PAPER (called currency or money) is used to cause a human being to supply their labor, that labor is used to extract or collect raw materials or to grow vegetables and fruit or to build items that are NEEDED to live.
As humanity has evolved various complex systems for doing this have also evolved.
BUT the end result is always the same.
Something of no value is accepted as a mechanism for the exchange of labor and raw materials or finsished products whihc have intrinsic or real value.
What gives something it's basic value is need.
As time has passed for human civilization and we discover, create and invent new things we acquire new dependencies on these items which become needs as well.
Plumbing and medicine for example.
The primary needs of all humans are food, water, shelter and clothing to withstand changes in climate. Add fire to provide warmth.
These basic primary needs haven't changed since the first mammals were evolved.
Cooking and clothing and shelters evolved as well. To this very day these are the essential life sustaining resources.
CURRENCY has no value unless there is enough to build a fire for warmth in case there is no wood or twigs to use as kindle.
As time passed we humans acquired fetishes .... what we ate, drank, wore, used as shelter and to keep warm became frozen foods, beer, dresses, pants and furnaces.
You get the point.
All the while value was attached to currency which replaced barter. Then came securities which represented even larger sums of bundled worthless currency. Stocks allowed wealthy individuals to easily transact with one another and exchange inherited wealth.
And today we are a nation with a national debt that itself is worth nothing. Yet we are indentured to those who hold the debt - most are wealthy americans collecting passive income in the form of interest.
Passive income is money you accrue while doing nothing.