What would happen to the financial system if all debt was nullified?

TOPICS: In Aquarian age, violence must be transcended – never a situation where violence is the only way out – change will not come from above – reforming the system without a collapse – people must understand how the money system works – in a democracy, people must be awake – to whom do nations owe the money? – the international monetary power elite – people will not rise out of ignorance, and the power elite says they don’t have to – demanding systemic changes to financial institutions – refusing to pay back the debt – richest nations are not living within their means – the gambling economy – a world-wide pyramid scheme – an economy based on perception—which can shift instantly – why debt-based economy will collapse – system for nullifying debt – real estate prices tied to the value of people’s labor – there is currently no free market, only a manipulated system – the elitist dream society – the media and the elite – people who will not know better – the people are not responsible for the current system –

Question: I sometimes read a financial newsletter and a reader posted these questions about the financial system in America.  I thought I would share them in case Saint Germain wanted to comment.

“If,” asks another reader ready for armed rebellion (by email at least), “the government is in breach of its original contract with the people and has entered into a separate contract with a banking system, which is also in breach of its contract with the people, are the people still required to fulfill their part of the contact with the government and the banking system?
“If such a scenario is true, do the people have a responsibility to take arms against a sea of troubles, and by opposing end them? Wasn’t it Jefferson who wrote, ‘That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it’?
“Could opting out of continued payment to this system be an effective form of nonviolent resistance? Would continuing to support such a system be an act of treason against your creator and fellow man?”

Answer from ascended master Saint Germain through Kim Michaels: (June 28, 2011)

Let me first make it clear that we of the ascended masters do not advocate any form of violent resistance. During the Piscean age, some violent resistance was unavoidable given the state of the collective consciousness. Yet as we have moved into the Aquarian Age, a definitive shift has occurred, and there is a need to transcend the very consciousness that makes it seem like violent resistance is the only way out, is necessary, is beneficial or even sanctioned from Above.

There is NEVER a situation where violence is the only or even the most efficient option. You see, it is not a matter of whether a certain result is produced; it is far more important how change is brought about. It is not my aim to bring about certain physical changes in order to manifest the Golden Age. For I know that the Golden Age will only be manifest through a fundamental change in the collective consciousness, namely a transcendence of the force-based state of mind. Thus, this shift in consciousness is my principal aim.

When it comes to the financial system, there can be no doubt that change will not come from above. The politicians and the financial experts who have been “dealing” with the financial crisis since 2008 have already proven that they are not willing to create systemic reforms. Instead, they will keep patching the existing system, seeking to delay a collapse one more day, week or year. They are hoping they can delay the collapse indefinitely, but that is partly because they do not recognize the power we have described as the second law of thermodynamics and partly because they think they can indeed “fool all of the people all of the time.”

There are two ways to bring about a reform of the system. One is that the system collapses under its own weight and is beyond repair. The other is that the people finally decide that “Enough is enough!” and thus make the elite see that they cannot continue as usual.

Yet neither of these will necessarily bring a true or constructive reform of the system, because if they are not accompanied by a more widespread understanding of how the financial system works, then there will simply be an aspiring power elite that will take over as the established elite loses its grip on power. And that will likely lead to an even deeper form of financial slavery.

Thus, what you have seen earlier in Iceland and now in Greece has the potential to go several ways, and so far it has not moved towards higher understanding but only toward more anger.

You see, on the one hand, if the system is to be reformed without a collapse, it is necessary that the people signal to the elite that they are no longer willing to pay for the mistakes, manipulations and mismanagement of the financial and political elites—whether it be through direct taxes or indirect taxes, such as inflation. However, if this happens only through anger – as it is currently happening in Greece – it will not have a constructive effect. It might lead to a panic in the financial markets that can take the system down, but as I said this is likely to lead to a new power elite group taking control. In fact, there are already a couple of groups that are deliberately pushing events towards this, hoping they can take over from the established elite.

So what is really needed is that the people come to understand how the money system works, so they can decide to take the power over the money system away from an elite and vest it where it should be vested: with elected representatives, who are held accountable through complete transparency. Yet for this to happen, the people must be willing to take responsibility for their nations and their lives.

The people must awaken to the realization that since the advent of democracy, they have had the responsibility to be alert and awake. It is not enough for democratic citizens to be largely ignorant of how the world works, and then think they have done their civic duty by voting every four years. They must realize that the representatives that emerge and are elected reflect the consciousness of the people. And if the people are ignorant, they will end up with two kinds of elected representatives: those who are as ignorant as the people and those who are willing to take advantage of the people’s ignorance and complacency.

There is a widespread tendency to think that democracy is the easiest form of government. In reality, it is one of the most difficult, in the sense that it demands a lot more education and awareness from the people than any other form of government. And even though there has never been more information available, the people simply indulge themselves in empty entertainment instead of each person education him- or herself in at least one area.

Now, going back to the crisis in Greece and several other nations, it is becoming obvious to anyone thinking logically that the greed of the financial elite has brought the world to a critical point. Many nations have a debt so large that the people of those nations simply could not pay it back in their lifetimes. Well, they could if they worked as slaves for the rest of their lives, but it is not likely that citizens of democratic nations will be willing to do this.

So the logical question that could be asked here is this: “To whom do the people of Greece owe the money the nation has borrowed?” And then a further question: “To whom do the people of all nations owe the money?” You might say, “Well, they owe a lot of money to French banks, and that is why France is so eager to find a solution.” Yet then ask a further question: “Who owns the banks that are based in France? Are they truly French banks, or are they simply internationally owned banks that have their headquarters or operations in France?”

If you keep asking these questions and “following the money,” you will see that there is a rather small network of financial institutions that truly have no national allegiance, but have allegiance only to an international elite of people whose agenda respects neither nations nor peoples. They use nations only as a base, and they use people either as cannon fodder or as economic slaves.

So why would the people of a free democratic society feel any obligation to pay back money owed to an elite that has no respect for them, their democratic rights or their God-given rights?

Well, if you look at this objectively, you see that the people feel obligated because they do not want to rise out of their ignorance. And what the power elite has offered the people is that if they allow the elite to run things, then the elite will give the people a comfortable lifestyle with stability (or so they claim). In other words, the people can continue to sleepwalk through life instead of fulfilling their true responsibilities as democratic citizens.

So we now see the ideal outcome. It is that the people decide to wake up and accept that they must take responsibility for their nations. They must educate themselves, so they can demand to get representatives who will know how to create a more just financial system and do so with complete transparency. And then, the people must hold themselves accountable for holding their representatives accountable.

We also see one less than ideal outcome. It is that most people will not take responsibility and will not awaken from their comfortability addiction. Thus, they will continue to allow the elite to seek to patch the system, so they can maintain some illusion of stability—until the next event threatens a new crisis. Another less than ideal outcome is that the people become angry and simply lash out against an enemy that is seen as “out there” without taking responsibility for changing themselves.

In the current situation, there is a potential that the people in most other European countries would silently back that their governments put pressure on the people of Greece to accept the austerity measures so a collapse can be avoided. In other words, people in other nations will think that the Greek people are to blame, and they will think that by suppressing the Greeks, they themselves will maintain stability and comfortability. The reason being that they will not look far enough ahead and see that the crisis will simply roll around Europe and the world, until the people in all developed nations have been burdened by unfair taxes in order to keep the elite in caviar.

And truly, I am not hereby saying the Greek people are heroes. They have indeed been more asleep than most, which is why the crisis has started there. And their anger is simply an anger against themselves, but given that it is directed at someone else, it only shows how unwilling they are to take responsibility for their lives.

What I am pointing out is that for a true change to occur, there would have to be a new awareness among the people of all democratic nations, that we need to take a united stand and demand systemic changes to the international financial system. Which includes refusing to pay the debt owed to international financial institutions. Unfortunately, that is not going to happen in the short term. In fact, it will not happen until the people have been awakened, and they are not likely to be awakened “voluntarily” but only through the fear of a total collapse and what that might entail.

I will also point out that the people need to acknowledge the fundamental dynamic that has caused the richest nations in the world to work up such enormous amounts of debt. It is simply that the people have not taken responsibility for living within their means, both on a personal and on a national level. Instead, they have bought into the promises made by the elite, that you can live beyond your means by living off of borrowed money and by playing in the gambling economy.

What the international elite has created is truly a world-wide version of a pyramid scheme. The problem with any pyramid scheme is that people only make money as long as the scheme is expanding. And given that the planet has a finite size – and that two thirds of the world’s population are still living beneath the poverty level – the pyramid scheme has simply exhausted its expansion capability.

The international elite knows this. In fact, some have known it from the beginning. So what you are seeing outplay itself in the world media is simply the elite attempting to gradually manipulate the people of the richest countries into accepting an added tax burden, in order to pay the bill for the fact, that those who were in on the early expansion of the pyramid scheme, made an enormous profit from investing money they had created out of nothing.

Thus, it is necessary to create a money system based on something that has real value, as I have expounded on before. There is simply only so far you can go with a system, where the value of money and financial instruments is based on only one thing: people’s perception.

When money is based on something that has real value, the value will change only slowly, which gives true stability. When the value of money is based on perception – perception that can change in an instant with today’s communication technology – there can never be true stability. Of course, in such a system, there is no room for the “get-rich-quick” schemes that are so popular with the elite and even with a percentage of the people.

In fact, there is no room for money created out of debt, because such money owes its value to the perception that it will be paid back. Yet debt-based money will create inflation that will degrade the value of people’s labor, and thus it is inevitable that they will eventually grow the debt to a size that individuals or nations cannot pay back. The reason being that the debt was incurred when labor had a certain value, but due to inflation, it has to be paid back when labor has lost value. It is only a matter of time before the deficit grows larger than people’s physical ability or their willingness to work as slaves.

In Old Testament times there was a system for nullifying all debt at certain times. The reason being that even then it was recognized that lending money with interest would lead to an ever-increasing debt burden that would eventually cripple society. So what I am saying here is that the world has already crossed a threshold, where the only practical solution is that the people say “STOP” and demand the nullification of all debt owed to these international institutions. Yet they must then also demand the creation of a stable money system and that their nations live within their means, so that no nation borrows for “consumption” but only for investments, such as infrastructure.

Of course, a true reform would also require that all real estate prices be adjusted down, so they can again be tied to the value of people’s labor. The international elite has for several decades artificially manipulated the world into ever-increasing real estate prices, so that the people owe more and more money to the institutions of the elite. And if the people then default, the elite will end up owning most real estate in a country.

Many among the people have made money on this and many feel the major asset they own is their home. Thus, they will be reluctant to support changes that would lower the value of their major asset. And they will be reluctant to give up the dream that one day they too can make it big. Yet how can you possibly make it big if the value of real estate rises many times faster than the value of your labor? Is it not obvious that there will come a point when growth can no longer be sustained and the system will collapse? For when the amount of debt goes too far beyond the value of labor, who can pay back the debt?

If debt is nullified, what does it matter if the value of your house is lowered? So what is wrong with taking the value of real estate down to a level that is based on what people can earn through their labor, rather than being based on the speculative hope that prices will continue to rise indefinitely?

I realize many will say that if government lowered real estate prices, they would be interfering with the free market and the law of supply and demand. Yet only very short-sighted people can believe that the current international financial system is based on free enterprise and that the meteoric rise in real estate prices (over the past 2-3 decades) could possibly be caused by supply and demand. It is a completely manipulated system based on the perception that drives a gambling economy. Free enterprise is NOT based on a gambling mindset, but on the mindset that making money should be based on providing a service that creates more value for everyone.

The reason the elite would not want the value of money or real estate to be tied to the value of people’s labor is that they have no respect for people’s labor. Their “ideal” society is something like the medieval feudal societies, where people’s labor had no inherent value because they were forced to works as slaves for the elite. And, of course, the elite do not want to work and they do not want to provide a service. Their mindset is that they belong to a special category of people who have privileges to which they are entitled. A democracy is based on the idea that ALL people have equal rights and that no power on earth can take away these rights. Members of the elite want a society in which they have special privileges that the people cannot take away from them.

The first step towards a change in the system would be that the people educate themselves by looking for knowledge beyond mainstream media, which is either controlled by the international elite or intimidated into silence by that elite. This is already beginning to happen, but it must be accelerated, so that major media begins to realize that the key to their future is NOT to cater to the elite but to work for the people.

Even though the elite largely owns the media, they still cannot fully control people’s perception as the system begins to show its weaknesses. They can control it to a large degree, so that the people have not yet questioned the fundamentals of the system, but even that will change as the system continues to collapse under its own weight, with the collapse simply spreading from sector to sector. Up until now, the elite has managed to keep the fundamental weakness of the system hidden by moving the deficit around, but they are nearing the end of the system’s ability to hide its weakness.

Again, the only viable solution is that the people wake up and acknowledge how much their perception of life has been manipulated by the power elite, so they can stop basing their lives on polluted perception – which suffering inevitably follows – and instead base their lives on pure perception. It is, of course, in order to help people attain pure perception that we have given the many teachings and tools on this website and through other sponsored endeavors over more than a century.

In today’s information society, the excuse that “There was no way we could have known” is no longer valid. People have a way to know. It is only a question of whether they are willing to make use of it.

As the old saying goes, “If people knew better they would do better.” The problem is that so many people are deliberately not willing to know better, because they do not want to change their ways. Yet in the Aquarian Age, deliberate ignorance is the fastest way to make karma, and thus the fastest way to activate the second law of thermodynamics—that will break down the systems that have become closed because of people’s deliberate ignorance.

In closing, I would not say that continuing to support the current system is an act of treason against your Creator, for your Creator has given you free will. And if the people allow an elite to run things, then the people must be allowed to experience the consequences.

Yet it is clearly a letting down of your responsibility towards yourself and your fellow man, including your nation and the world. The idea that maintaining the current system is the responsibility of the people or in the best interest of the people or the world is simply an artificially created perception that must be allowed to burst as a soap bubble.

It is really only a matter of how much suffering the people need to experience before the perception bubble bursts and people take up their responsibility to govern themselves. Will the financial bubble burst before the perception bubble? THAT is the question.


Copyright © 2011 by Kim Michaels