1/ Thought experiment: let's say one company invents a miracle machine (the replicator from StarTrek!) that produces every product we can imagine at near zero cost. They keep the machine a closely guarded secret and flood the global market with products at low but nonzero prices.

2/ Since their prices for every product is lower than anyone else, they end up gaining more and more market share. They themselves, thanks to their miracle machine, buy nothing from anyone.

Can you see the end result? They end up holding huge financial claims on the world.

3/ Globalization has really come down to the "haves" holding huge financial claims on the "have nots" - Germany's financial claims on Italy, China's financial claims on Sri Lanka and so on.

Global monetary policy has become an instrument of bondage for the "lesser" nations.

4/ This process has reached an absurd extreme. The reason it cannot go on much further is that the US itself, the prime mover of globalization, has become heavily indebted in order to supply the "money" (USD) that global trade needs. And more than trade, financial gambling too.

5/ Let's get back to our miracle machine. China, Germany, Japan, Taiwan, South Korea ... have the goods the world wants but cannot really pay for except with debt.

These countries, for all their prowess, cannot ever "collect" on that debt because collecting on it means imports!

6/ There is no realistic time line in which a Sri Lanka can export $60 billion worth of goods that China and Germany would want , to repay their $60 billion debt.

The issue goes to Sri Lanka not having that "miracle machine" i.e, the capability to produce the advanced goods.

7/ Countries like Italy and Greece face the same problem but since they are in the EU, Germany can basically "mutualize" their debt which is the same as Germany forgiving Italian and Greek debt. That's the only way the EU can survive.

The world needs mass debt relief now.

8/ This process also has to happen within countries. Poorer segments of society have to get their debts wiped out.

There is no durable economic recovery until this debt overhang issue is addressed.

It means that creditor nations and creditor classes have to accept haircuts.

9/ Since there is no way Italy or Greece or Sri Lanka can ever repay their debts (they don't have goods to offer that
their creditor nations want to buy), the hair cuts are merely a recognition of the loss that the creditor nations have already suffered.

10/ Finally, the "miracle machine" i.e, the productive prowess, needs to be broadly shared and there is no point for a Germany or Japan or China to hoard the "miracle machine" because they cannot really collect the debts that arise from their exports without equivalent imports.

11/ By hoarding their productive prowess they simply end up hoarding debt from other nations.

Spiritual economics is about realising the futility of putting a large number of people into your debt. Neither the creditor not the debtor is at peace.

This realization must happen.