No matter how you twist and turn the matter, Greece is never going to be able to pay its national debt. Neither are Spain, Italy, or half a dozen other nations that ran up big debts when it was cheap and convenient to do so, and are now being strangled by a panicking bond market and a collapsing economy. This isn't new; most of the countries on Earth have either defaulted outright on their debts or forced renegotiations on their creditors that left the latter with some equivalent of pennies on the dollar. The US last did that in a big way in 1934, when the Roosevelt administration unilaterally changed the terms on billions of dollars in Liberty Bonds from 'payable in gold' to 'payable in devalued dollars,' and proceeded to print the latter as needed. That or considerably worse will be happening in Europe in the near future, too. \nA good deal of the discussion of these upcoming defaults in the blogosphere, though, has insisted that these defaults will lead to a complete collapse of the world's financial economy, and from there to an equally complete collapse of the world's productive economy, leaving all seven billion of us to starve in the gutter. It's an odd belief, since sovereign debt defaults have happened many times in the recent past, currency collapses are far from rare in economic history, and nation-states can do - and have done - plenty of drastic things to keep goods and services flowing in an economic emergency. Partly, I suspect, it's our old friend the apocalypse meme - the notion, pervasive in modern culture, that the only alternative to the indefinite continuation of business as usual is some unparalleled cataclysm or other. \nStill, there's another dimension to these fantasies, which is simply that the financial industry has done a superb job of convincing people that what they do is important to the rest of us. It's true, to be sure, that having currency in circulation makes economic exchanges easier, and the kind of banking services that people and ordinary businesses use are also very helpful, but governments used to produce and circulate currency without benefit of banks until fairly recently, and banking services of the kind I've just mentioned can be provided quickly and easily by a government that means business; in 1933 it took the US government just over a week, at a time when information technology was incomparably slower than it is today, to nationalize every bank in the country and open their doors under Federal management. The other services the financial industry provides to the real economy can equally well be replaced by hastily kluged substitutes, or simply put on hold for the duration of the crisis. \nSo the downside of any financial crisis, however grandiose, can be stopped promptly by proven methods. Then there's the upside. Yes, there's an upside. That's the ultimate secret of the financial crisis, the thing that nobody anywhere wants to talk about: if a country gets into a credit crisis, defaulting on its debts is the one option that consistently leads to recovery. \nThat statement ought to be old hat by now. Russia defaulted on its debts in 1998, and that default marked the end of its post-Soviet economic crisis and the beginning of its current period of relative prosperity. Argentina defaulted on its debts in 2002, and the default put an end to its deep recession and set it on the road to recovery. Even more to the point, Iceland was the one European country that refused the EU demand that the debts of failed banks must be passed on to governments; instead, in 2008, the Icelandic government allowed the country's three biggest banks to fold, paid off Icelandic depositors by way of the existing deposit insurance scheme, and left foreign investors twisting in the wind. Since that time, Iceland has been the only European country to see a sustained recovery. \nWhen Greece defaults on its debts and leaves the Euro, in turn, there will be a bit of scrambling, and then the Greek recovery will begin. That's the reason the EU has been trying so frantically to keep Greece from defaulting, no matter how many Euros have to be shoveled down how many ratholes to prevent it. Once the Greek default happens, and it will - the number of ratholes is multiplying much faster than Euros can be shoveled into them - the other southern European nations that are crushed by excessive debt will line up to do the same. There will be a massive stock market crash, a great many banks will go broke, a lot of rich people and an even larger number of middle class people will lose a great deal of money, politicians will make an assortment of stern and defiant speeches, and then the great European financial crisis will be over and people can get on with their lives.

• apocalypse narrative
• narratization
• debt
• market collapse
• financial collapse
• economics
• european union
• banks
• government
• money
• the great despression
• usa
• currency
• europe

Furthermore, the absurdity of modern life is blatantly revealed by those economic aspects that essentially, and regressively, determine it. On the one hand, an economy of necessities has decidedly become an economy of excess, one of whose causes is the overproduction and progress of industrial technology. On the other hand, overproduction requires, for the sake of the market, that a maximum volume of needs be fed and maintained among the masses: needs that, on the brink of becoming customary and 'normal,''' entail a corresponding, growing conditioning of the individual. The first factor here is the very nature of the dissociated productive process that has, as it were, taken modern man by the hand, like an unleashed giant incapable of restraint, thus confirming the saying: Fiat production pereat homo! (Let there be production! Let man perish! — Werner Sombart). While in a capitalist regime not only greed for profits and dividends has a part in this senseless increase in production, but also the objective necessity for capital reinvestment in order to prevent a blockage paralyzing the entire system, another more general cause of the senseless increase of production along the lines of an excessive consumer economy is the necessity to employ labor to combat unemployment. As a result, in many states the principle of overproduction and overindustrialization, exacerbated by the demands of private capitalism, has become the very dictator of sociopolitical planning. So a vicious circle forms, the opposite of a system in equilibrium, of processes well contained within sensible boundaries. \nThis naturally brings us to an even more prominent aspect of the absurdity of modern existence: the unrestrained increase and growth of the population, occurring along with the regime of the masses, fostered by democracy, the 'conquests of science,' and the unselective welfare system. The procreative pandemic or demon is effectively the principal force that incessantly feeds and sustains the entire system of the modern economy, with its mechanism ever more conditioning the individual. Proof positive of the derisory character of the craze for power nurtured by today's man is the fact that this creator of machines, this dominator of nature, this inaugurator of the atomic era, is not far above an animal or a savage when it comes to sex. He is incapable of controlling the most primitive forms of the sexual impulse and everything connected with it. So, as though obeying a blind destiny, he ceaselessly, irresponsibly, increases the formless human mass and supplies the chief driving force to the entire system of the paroxysmal, unnatural, and ever more conditioned economic life of modern society, creating at the same time innumerable hotbeds of social and international instabilities and tensions. The vicious circle then becomes that of the mass, which, with the excess potential of a workforce, feeds over production, which in its turn seeks ever-larger markets and masses to absorb the products. Nor can we ignore the fact that demographic growth has an index inversely proportional to the social scale, thus adding a further factor to the general regressive process.

• anti-consumption
• the spectacle
• capitalism
• society
• conditioning
• market
• greed
• progress
• economics
• consumerism
• unemployment
• population growth
• lust
• sexuality

If there is one proposition which currently wins the assent of nearly everybody, it is that we need more jobs. 'A cure for unemployment' is promised, or earnestly sought, by every Heavy Thinker from Jimmy Carter to the Communist Party USA, from Ronald Reagan to the head of the economics department at the local university, from the Birchers to the New Left. \r\n \r\nI would like to challenge that idea. I don't think there is, or ever again can be, a cure for unemployment. I propose that unemployment is not a disease, but the natural, healthy functioning of an advanced technological society. \r\n \r\nThe inevitable direction of any technology, and of any rational species such as Homo sap., is toward what Buckminster Fuller calls ephemeralization, or doing-more-with-less. For instance, a modern computer does more (handles more bits of information) with less hardware than the proto-computers of the late '40's and '50's. One worker with a modern teletype machine does more in an hour than a thousand medieval monks painstakingly copying scrolls for a century. Atomic fission does more with a cubic centimeter of matter than all the engineers of the 19th Century could do with a million tons, and fusion does even more. \r\n \r\n*Unemployment is not a disease; so it has no 'cure.'* \r\n \r\nThis tendency toward ephemeralization or doing more-with-less is based on two principal factors, viz: \r\n \r\nThe increment-of-association, a term coined by engineer C.H. Douglas, a meaning simply that when we combine our efforts we can do more than the sum of what each of us could do separately. Five people acting synergetically together can lift a small modern car, but if each of the five tries separately, the car will not budge. As society evolved from tiny bands, to larger tribes, to federations of tribes, to city-states, to nations, to multinational alliances, the increment-of-association increased exponentially. A stone-age hunting band could not build the Parthenon; a Renaissance city-state could not put Neil Armstrong on the Moon. When the increment-of-association increases, through larger social units, doing-more-with-less becomes increasingly possible. \r\n\r\nKnowledge itself is inherently self-augmenting. Every discovery 'suggests' further discoveries; every innovation provokes further innovations. This can be seen concretely, in the records of the U.S. Patent Office, where you will find more patents granted every year than were granted the year before, in a rising curve that seems to be headed toward infinity. If Inventor A can make a Whatsit out of 20 moving parts, Inventor B will come along and build a Whatsit out of 10 moving parts. If the technology of 1900 can get 100 ergs out of a Whatchamacallum, the technology of 1950 can get 1,000 ergs. Again, the tendency is always toward doing-more-with-less. \r\n \r\nUnemployment is directly caused by this technological capacity to do more-with-less. Thousands of monks were technologically unemployed by Gutenberg. Thousands of blacksmiths were technologically unemployed by Ford's Model T. Each device that does-more-with-less makes human labor that much less necessary. \r\n \r\nAristotle said that slavery could only be abolished when machines were built that could operate themselves. Working for wages, the modern equivalent of slavery -- very accurately called 'wage slavery' by social critics -- is in the process of being abolished by just such self-programming machines. In fact, Norbert Wiener, one of the creators of cybernetics, foresaw this as early as 1947 and warned that we would have massive unemployment once the computer revolution really got moving. \r\n \r\nIt is arguable, and I for one would argue, that the only reason Wiener's prediction has not totally been realized yet -- although we do have ever-increasing unemployment -- is that big unions, the corporations, and government have all tacitly agreed to slow down the pace of cybernation, to drag their feet and run the economy with the brakes on. This is because they all, still, regard unemployment as a 'disease' and cannot imagine a 'cure' for the nearly total unemployment that full cybernation will create. \r\n \r\nSuppose, for a moment, we challenge this Calvinistic mind-set. Let us regard wage-work -- as most people do, in fact, regard it -- as a curse, a drag, a nuisance, a barrier that stands between us and what we really want to do. In that case, your job is the disease, and unemployment is the cure. \r\n \r\n'But without working for wages we'll all starve to death!?! Won't we?' \r\n \r\nNot at all. Many farseeing social thinkers have suggested intelligent and plausible plans for adapting to a society of rising unemployment. Here are some examples. \r\n \r\nThe National Dividend. This was invented by engineer C. H. Douglas and has been revived with some modifications by poet Ezra Pound and designer Buckminster Fuller. The basic idea (although Douglas, Pound, and Fuller differ on the details) is that every citizen should be declared a shareholder in the nation, and should receive dividends on the Gross National Product for the year. Estimates differ as to how much this would be for each citizen, but at the current level of the GNP it is conservative to say that a share would be worth several times as much, per year, as a welfare recipient receives -- at least five times more. Critics complain that this would be inflationary. Supporters of the National Dividend reply that it would only be inflationary if the dividends distributed were more than the GNP; and they are proposing only to issue dividends equal to the GNP. \r\n\r\nThe Guaranteed Annual Income. This has been urged by economist Robert Theobald and others. The government would simply establish an income level above the poverty line and guarantee that no citizen would receive less; if your wages fall below that level, or you have no wages, the government makes up the difference. This plan would definitely cost the government less than the present welfare system, with all its bureaucratic red tape and redundancy: a point worth considering for those conservatives who are always complaining about the high cost of welfare. It would also spare the recipients the humiliation, degradation and dehumanization built into the present welfare system: a point for liberals to consider. A system that is less expensive than welfare and also less debasing to the poor, it seems to me, should not be objectionable to anybody but hardcore sadists. \r\n \r\nThe Negative Income Tax. This was first devised by Nobel economist Milton Friedman and is a less radical variation on the above ideas. The Negative Income Tax would establish a minimum income for every citizen; anyone whose income fell below that level would receive the amount necessary to bring them up to that standard. Friedman, who is sometimes called a conservative but prefers to title himself a libertarian, points out that this would cost 'the government' (i.e. the taxpayers) less than the present welfare system, like Theobald's Guaranteed Annual Income. It would also dispense with the last tinge of humiliation associated with government 'charity,' since when you cashed a check from IRS nobody (not even your banker) would know if it was supplementary income due to poverty or a refund due to overpayment of last year's taxes. \r\n \r\nThe RICH Economy. This was devised by inventor L. Wayne Benner (co-author with Timothy Leary of Terra II) in collaboration with the present author. It's a four-stage program to retool society for the cybernetic and space-age future we are rapidly entering. RICH means Rising Income through Cybernetic Homeostasis.\r\n \r\n*Stage I* is to recognize that cybernation and massive unemployment are inevitable and to encourage them. This can be done by offering a $100,000 reward to any worker who can design a machine that will replace him or her, and all others doing the same work. In other words, instead of being dragged into the cybernetic age kicking and screaming, we should charge ahead bravely, regarding the Toilless Society as the Utopian goal humanity has always sought. \r\n \r\n*Stage II* is to establish either the Negative Income Tax or the Guaranteed Annual Income, so that the massive unemployment caused by Stage I will not throw hordes of people into the degradation of the present welfare system.\r\n \r\n*Stage III* is to gradually, experimentally, raise the Guaranteed Annual Income to the level of the National Dividend suggested by Douglas, Bucky Fuller, and Ezra Pound, which would give every citizen the approximate living standard of the comfortable middle class. The reason for doing this gradually is to pacify those conservative economists who claim that the National Dividend is 'inflationary' or would be practically wrecking the banking business by lowering the interest rate to near-zero. It is our claim that this would not happen as long as the total dividends distributed to the populace equaled the Gross National Product. but since this is a revolutionary and controversial idea, it would be prudent, we allow, to approach it in slow steps, raising the minimum income perhaps 5 per cent per year for the first ten years. And, after the massive cybernation caused by Stage I has produced a glut of consumer goods, experimentally raise it further and faster toward the level of a true National Dividend. \r\n \r\n*Stage IV* is a massive investment in adult education, for two reasons.\r\n\r\nPeople can spend only so much time fucking, smoking dope, and watching TV; after a while they get bored. This is the main psychological objection to the workless society, and the answer to it is to educate people for functions more cerebral than fucking, smoking dope, watching TV, or the idiot jobs most are currently toiling at. \r\n \r\nThere are vast challenges and opportunities confronting us in the next three or four decades, of which the most notable are those highlighted in Tim Leary's SMI2LE slogan -- Space Migration, Intelligence Increase, Life Extension. Humanity is about to enter an entirely new evolutionary relationship to space, time, and consciousness. We will no longer be limited to one planet, to a brief, less-than-a-century lifespan, and to the stereotyped and robotic mental processes by which most people currently govern their lives. Everybody deserves the chance, if they want it, to participate in the evolutionary leap to what Leary calls 'more space, more time, and more intelligence to enjoy space and time.'\r\n \r\nWhat I am proposing, in brief, is that the Work Ethic (find a Master to employ you for wages, or live in squalid poverty) is obsolete. A Work Esthetic will have to arise to replace this old Stone Age syndrome of the slave, the peasant, the serf, the prole, the wage-worker -- the human labor-machine who is not fully a person but, as Marx said, ' a tool, an automaton.' Delivered from the role of things and robots, people will learn to become fully developed persons, in the sense of the Human Potential movement. They will not seek work out of economic necessity, but out of psychological necessity -- as an outlet for their creative potential.\r\n \r\n ('Creative potential' is not a panchreston. It refers to the inborn drive to play, to tinker, to explore, and to experiment, shown by every child before his or her mental processes are stunted by authoritarian education and operant-conditioned wage-robotry.)\r\n \r\nAs Bucky Fuller says, the first thought of people, once they are delivered from wage slavery, will be, 'What was it that I was so interested in as a youth, before I was told I had to earn a living?' The answer to that question, coming from millions and then billions of persons liberated from mechanical toil, will make the Renaissance look like a high school science fair or a Greenwich Village art show.

• labor
• unemployment
• economics
• society
• humanity
• culture
• ephemeralization
• evolution
• synergy
• technology
• slavery
• cybernetics
• corporations
• government
• national dividend
• welfare
• negative income tax
• education
• creativity
• meaning
• death
• life
• reason
• time
• work
• will
• self
• smoking
• knowledge
• relationship
• thought
• consciousness
• functions
• ideas
• art
• intelligence
• future
• science
• infinity
• usa
• innovation
• poor
• taxes
• revolution
• poverty
• disease
• model
• other
• moon
• fall
• programming
• matter

No other drug has had such a prolonged detrimental effect on human beings. The struggle to produce, control, and tax alcohol and to absorb its social consequences is a significant part of the story of the evolution of the mercantile empires of the eighteenth and nineteenth centuries. Alcohol and slavery often went hand in hand across the economic landscape. In many cases alcohol literally was slavery as the triangular trade of slaves, sugar, and rum and other practices of European civilization spread over the earth, subjugating other cultures. Sugar and the alcohol that could be made from it became a European obsession that severely distorted the demographics of tropical regions.

• drugs
• alcohol
• humanity
• society
• culture
• taxes
• evolution
• economics
• politics
• slavery
• control
• consequences
• struggle
• civilization
• obsession
• other
• sugar

In the social production of their existence, men inevitably enter into definite relations, which are independent of their will, namely relations of production appropriate to a given stage in the development of their material forces of production. The totality of these relations of production constitutes the economic structure of society, the real foundation, on which arises a legal and political superstructure and to which correspond definite forms of social consciousness. The mode of production of material life conditions the general process of social, political and intellectual life. It is not the consciousness of men that determines their existence, but their social existence that determines their consciousness.

• relationship
• economics
• society
• consciousness
• communism
• existence
• life
• will
• structure

Flaxscrip was first introduced into Discordian groups by the mysterious Malaclypse the Younger, K.S.C., in 1968. Hempscrip followed the year after, issued by Dr. Mordecai Malignatus, K.N.S. (In the novel, taking one of our few liberties with historical truth, we move these coinages backward in time and attribute hempscrip to the Justified Ancients of Mummu.) The idea behind flaxscrip, of course, is as old as history; there was private money long before there was government money. The first revolutionary (or reformist) use of this idea, as a check against galloping usury and high interest rates, was the foundation of 'Banks of Piety' by the Dominican order of the Catholic Church in the late middle ages. (See Tawney, Religion and the Rise of Capitalism.) The Dominicans, having discovered that preaching against usury did not deter the usurer, founded their own banks and provided loans without interest; this 'ethical competition' (as Josiah Warren later called it) drove the commercial banks out of the areas where the Dominicans practiced it. Similar private currency, loaned at a low rate of interest (but not at no interest), was provided by Scots banks until the British government, acting on behalf of the monopoly of the Bank of England, stopped this exercise of free enterprise. (See Muellen, Free Banking.) The same idea was tried successfully in the American colonies before the Revolution, and again was suppressed by the British government, which some heretical historians regard as a more direct cause of the American Revolution than the taxes mentioned in most schoolbooks. (See Ezra Pound, Impact, and additional sources cited therein.) During the nineteenth century many anarchists and individualists attempted to issue low-interest or no-interest private currencies. Mutual Banking, by Colonel William Greene, and True Civilization, by Josiah Warren, are records of two such attempts, by their instigators. Lysander Spooner, an anarchist who was also a constitutional lawyer, argued at length that Congress had no authority to suppress such private currencies (see his Our Financiers: Their Ignorance, Usurpations and Frauds). A general overview of such efforts at free enterprise, soon crushed by the Capitalist State, is given by James M. Martin in his Men Against the State, and by Rudolph Rocker in Pioneers of American Freedom (an ironic title, since his pioneers all lost their major battles). Lawrence Labadie, of Suffern, N.Y., has collected (but not yet published) records of 1,000 such experiments; one of the present authors, Robert Anton Wilson, unearthed in 1962 the tale of a no-interest currency, privately issued, in Yellow Springs, Ohio, during the 1930s depression. (This was an emergency measure by certain local businessmen, who did not fully appreciate the principle involved, and was abandoned as soon as the 'tight-money' squeeze ended and Roosevelt began flooding us all with Federal Reserve notes.) It is traditional among liberal historians to dismiss such endeavors as 'funny-money schemes.' They have never explained why government money is any less hilarious. (That used in the U.S. now, for instance, is actually worth 47 percent of its 'declared' face value). All money is funny, if you stop to think about it, but no private currency, competing on a free market, could ever be quite so comical (and tragic) as the notes now bearing the magic imprint of Uncle Sam—and backed only by his promise (or threat) that, come hell or high water, by God he'll make it good by taxing our descendants unto the infinite generation to pay the interest on it. The National Debt, so called, is of course, nothing else but the debt we owe the bankers who 'loaned' this money to Uncle after he kindly gave them the credit which enabled them to make this loan. Hempscrip or even acidscrip or peyotescrip could never be quite so clownish as this system, which only the Illuminati (if they really exist) could have dreamed up. The system has but one advantage: It makes bankers richer every year. Nobody else, from the industrial capitalist or 'captain of industry' to the coal-miner, profits from it in any way, and all pay the taxes, which become the interest payments, which make the bankers richer. If the Illuminati did not exist, it would be necessary to invent them—such a system can be explained in no other way, except by those cynics who hold that human stupidity is infinite. The idea behind hempscrip is more radical than the notion of private-enterprise currency per se. Hempscrip, as employed in the novel, depreciates; it is, thus, not merely a no-interest currency, but a negative-interest currency. The lender literally pays the borrower to take it away for a while. It was invented by German business-economist Silvio Gesell, and is described in his Natural Economic Order and in professor Irving Fisher's Stamp Script. Gresham's Law, like most of the 'laws' taught in State-supported public schools, is not quite true (at least, not in the form in which it is usually taught). 'Bad money drives out good' holds only in authoritarian societies, not in libertarian societies. (Gresham was clear-minded enough to state explicitly that he was only describing authoritarian societies; his formulation of his own 'Law' begins with the words 'If the king issueth two moneys . . . ,' thereby implying that the State must exist if the 'Law' is to operate.) In a libertarian society, good money will drive out the bad. This Utopian proposition—which the sane reader will regard with acute skepticism—has been seen to be sound by a rigorously logical demonstration, based on the axioms of economics, in The Cause of Business Depressions by Hugo Bilgrim and Edward Levy.* * Economists can 'prove' all sorts of things from axioms and few of them turn out to be true. Yes. We saved for a footnote the information that at least four empirical demonstrations of the reverse of Gresham's Law are on record. Three of them, employing small volunteer communities in frontier U.S.A. circa 1830-1860, are recorded in Josiah Warren's True Civilization. The fourth, employing contemporary college students in a psychology laboratory, is the subject of a recent Master's thesis by associate professor Don Werkheiser of Central State College, Wilberforce, Ohio.

• money
• capitalism
• free market
• discordianism
• anarchy
• government
• banks
• reference point
• history
• law
• flax
• hemp
• currency
• alternatives
• society
• god
• religion
• truth
• freedom
• time
• will
• authority
• psychology
• england
• experiments
• depression
• economics
• public
• taxes
• market
• revolution
• hell
• schools
• civilization
• other

If a differentiating feature is to be named, separating human from animal psychology, it is surely this of the subordination in the human sphere of even economics to mythology. And if one should ask why or how any such unsubstantial impulsion ever should have become dominant in the ordering of physical life, the answer is that, in this wonderful human brain of ours there has dawned a realization unknown to the other primates. It is that of the individual, conscious of himself as such, and aware that he, and all that he cares for, will one day die. This recognition of mortality and the requirement to transcend it is the first great impulse to mythology.

• life
• mortality
• will
• psychology
• recognition
• economics

There is one bit of advice given to us by the ancient heathen Greeks, and by the Jews in the Old Testament, and by the great Christian teachers of the Middle Ages, which the modern economic system has completely disobeyed. All these people told us not to lend money at interest: and lending money at interest - what we call investment - is the basis of our whole system.

• capitalism
• economics
• money
• old testament

It is easy to think that the Church has a lot of different objects - education, building, missions, holding services. Just as it is easy to think the State has a lot of different objects - military, political, ecnomic, and what not. But in a way things are much simpler than that. The State exists simply to promote and to protect the ordinary happiness of human beings in this life. A husband and wife chatting over a fire, a couple of friends having a game of darts in a pub, a man reading a book in his own room or digging in his own garden - that is what the state is there for. And unless they are helping to increase and prolong and protect such moments, all the laws, parliaments, armies, courts, police, economics, etc., are simply a waste of time. In the same way the Church exists for nothing else but to draw men into Christ, to make them little Christs. If they are not doing that, all the cathedrals, clergy, missions, sermons, even the Bible itself, are simply a waste of time.'

• christianity
• government
• religion
• life
• education
• time
• christ
• economics
• happiness