Tuesday, January 29, 2008
The Massive Volume Required Does Not Exist
First you send in soldiers to take control of the ground the spices and mines are located...then you can make a market.
And the credit system you see in operation right now has been in operation since the late 17th century...
And not gold...Silver was the primary material used to construct the circulating medium of exchange in the good old days...There's just not enough gold...
And 11 penny-weights of copper were needed to make cents...which is what a typical peasant would use to buy any spices they needed.
Need the soldiers to capture some copper mines as well or round prices to the nearest half Disme
"Dollars or Units—each to be of the value of a Spanish milled dollar as the same is now current, and to contain three hundred and seventy-one grains and four sixteenths parts of a grain of pure, or four hundred and sixteen grains of standard silver."
"Half Dismes—each to be of the value of one twentieth of a dollar, and to contain eighteen grains and nine sixteenths parts of a grain of pure, or twenty grains and four fifths parts of a grain of standard silver."
"Cents—each to be of the value of one hundredth part of a dollar, and to contain eleven penny-weights of copper."
--From the April 2, 1792 Coinage act
A commercial bank creates what they loan out...Credit...Basically they lend you your future income to spend in the present...Works great until you get to the future and need that income but it does not exist because it was blown yesterday.
Then you can't pay what you owe to the commercial banks and they take whatever collateral you used to back the loan...If you don't like that then you better not request a commercial bank to loan you your future income to blow in the present.
One slight problem...All the money in circulation is future income...and to keep it circulating...more and more has to be sucked from the future and blown in the present...And if you all stop requesting commercial banks to do that...civilization as you all have grown to know and love...Implodes to oblivion.
The USA and the world have been hyperinflating for 60 years...Various accounting tricks have been employed to hide it...In 1944 US consumers were requesting commercial banks to manufacture around 8 million dollars of new money a day or 1 Trillion dollars every 342 years and the total money supply was around 450 Billion dollars.
By 2000 US consumers were requesting the commercial banks to manufacture around 5 Billion dollars of new money a day or 1 Trillion dollars every 200 days and the total money supply was around 25 Trillion dollars.
Currently US consumers are requesting commercial banks to manufacture 11 Billion dollars of new money a day or 1 Trillion dollars every 90 days and the total money supply is about 44 Trillion dollars. It won't be much longer...Rates collapsed during the last recession from 6.5% to 1%...They will have to collapse lower than 1% to escape this next one...and to accomplish that you need massive volume...
Prior to the 2000-2003 recession the household debt to income ratio was 80%...now it's above 100%...
The massive volume required to escape another recession...does not exist.
The current plan is to keep everything half ass functioning until the next election so that the new installed puppet can blame the previously installed puppet for all the coming austerity measures that will need to be implemented during the implosion.
You all have been attempting to inflate out of debt for 60 years...The debt was 450 Billion in 1944 and now its 44 Trillion...sorry but you never will inflate out...It's impossible.
All you can do is service the continued existence of the money supply until it becomes impossible to and then stop payment and default...period end of story.
The constantly inflating money supply then transforms into the constantly deflating money supply...
Or inflation greater than previous inflation to maximum potential becomes inflation less than previous inflation to maximum potential when inflation greater than previous inflation to maximum potential reaches maximum potential.
The FED will just print more money belief is just a lie that was told to little children to keep them from having nightmares...Don't worry little children...Daddy has a magic weapon that can defeat GOD.
There is nothing the FED or Government or anyone can do to postpone the inevitable implosion of the system that is dependent upon greater inflation than previous inflation to be sustained forever.
It can't be done...Sure it can be attempted...But inflation greater than previous inflation forever will never be accomplished.
It never has been...All that is possible is to inflate to maximum potential...then implode...poof. That's what you all have been doing all through recorded history...and you all have been shocked every time when you all fail to accomplish what is obviously impossible.
It's not like this is new...But you all are newborns that replaced the previous dieoffs...
It can take many generations for the cycle to run full circle...You all just happened to be born at the terminal phase of the latest cycle...It began long before any of you existed...