The U.S. dollar's worth is a figment of everyone's imagination pure and simple... The basis for the dollar is Government bonds... What's worth more $10,000 in bonds or $10,000 in cash? The bonds, because the bonds gain value with compound interest while cash loses value from the compound interest... But their worth is just a figment of people's imagination... Now what is the future? All paper assets will become worthless because not very many people can comprehend the Fractional Reserve system at the basic level. Forget all the complexities and conspiracies piled on top of lies and half truths. It is so simple...
The Economic system of the current world civilization has not changed in 400 years... Central Banking based on fractional reserves. But something did change slightly in 1971.
Before the Gold Window closed the fractional basis for the U.S. Dollar was GOLD. How does that work?
Many years ago when gold coin was the currency Banks did not exist... The only group that had the necessary facilities to store wealth in the form of gold coins was the GOLDSMITHS. People would store (Deposit) their gold and the goldsmith would give them a receipt. The people found it easier to carry receipts to market than gold after awhile and the receipts became as "good as gold." The Goldsmiths noticed that at any given time 90% of the gold in their vaults just collected dust, so the goldsmiths started loaning gold in the form of receipts on top of just making phony receipts. The gold market to this very day is run like this... as long as people will take paper instead of GOLD you will never run out of GOLD and paper is almost endless.
One slight problem was found with this system: DEBT INFLATION. As Debt inflation grows the 'receipts' lose buying power two ways a) the compound interest charged on the 'loans' destroys the value of the receipts b) The counterfeit receipts and loans increase the supply of buying power which causes prices to rise which adds to or compounds the destruction of buying power.
And the biggest problem with DEBT inflation is that the bigger the DEBT grows the less GOLD there is to back up the DEBT so eventually the system will grow continually weaker until there is no backing any more for the receipts in circulation.
At the start of Debt deflation 1,000,000 receipts are in circulation with 10% backing by gold, so as long as only 100,000 receipts are exchanged for GOLD then there is no problem. But if DEBT INFLATION reaches MAXOUT at 10,000,000, then only 10,000 receipts are needed to suck up all the gold…
I could go on an on about how it evolves from that point but you hopefully see what I am saying…
DEBT INFLATION causes the Fractional System to become very weak...But today the backing of the U.S. Dollar is not gold but Bonds and the bonds are backed by the American people, so are the American people good as gold? That’s called slavery to be owned in such a way...
Bonds have compound interest attached to them so they rise in value as you hold them and are backed up by the American people so just what are the American people backed up by? Gold? No, the U.S. Dollars which are losing value in relation to the bond's compound interest rate… How are U.S. Dollars created? Every time Money is borrowed from a bank it is created out of thin air with compound interest attached to the debt/money which destroys the value of the money causing inflation. How does inflation work?
Let's say the money supply is $1000.00 and the compound interest that is destroying its value is 5%; if the money supply is $1000.00 and it costs $1000.00 to run the economy where does the money come from to pay the 5% interest rate from? Borrowing! Or Debt inflation.
Why Borrow? Well let's say you tried to save up to buy a house it could take 10 years but the bankers will create the money out of thin air for you if you don't mind paying them 5% compound interest/year for the money they created out of thin air.
By buying a house and borrowing the money to do it you have added to DEBT/money inflation. Why does debt inflation cause prices to rise? COMPOUND INTEREST. The more debt that is borrowed the more compound interest that is due...Compound Interest can never be paid off…
Eventually a strange thing starts to happen. In order to pay the compound interest, the speed that the economy has to run at has to be increased by being made more efficient or borrowing has to be increased or both which leads eventually to the ever popular HYPERINFLATION as more and more compound interest is created by the DEBT used to pay the compound interest.
Well that means we have unlimited resources right? Yes as long as the COMPOUND INTEREST can be paid by continually borrowing or creating DEBT to do it.
Unfortunately this process has an 'upper limit.' Once the 'economic activity' slows or stops, then the ability to create debt also slows or stops which in turn causes the inability of compound interest to be paid. And deflation begins which can only be stopped by bankruptcy or resumption of inflation…
Ok what is economic activity?
Economic Activity is the living process of human beings or everything that human beings do on a daily basis to contribute to their survival… Food, clothing, shelter and all the tools needed to accomplish their goal of survival on the planet EARTH.
What causes Economic activity to slow or stop? Reduction of borrowing required to accomplish the goal of survival such as everyone having enough shelter, enough food, enough clothing, enough tools - also Death puts an end to economic activity and various other things you get the point there is an upper limit to debt inflation.
Fractional reserve economics in its most simple to understand form
Compound interest creates debt inflation which causes economic activity to increase = life
But when inflation slows or stops due to economic activity slowing or stopping then…
When economic activity slows or stops Debt deflation begins which destroys the ability for compound interest to be serviced = Death
Or
Debt inflation = Life
Debt deflation = Death
Life and Death for whom? The payers of the compound interest created by the fractional reserve banking system namely the 6 billion people of the planet EARTH.
How do 'we' stop this highly destructive system? How do we break free from the slavery of Compound Interest? Answer: Abolish Compound Interest.
How do we abolish compound interest? That has been the 'real' dream of slaves since the beginning of recorded history and that is the 'secret' that the 'Powers That Be' or 'slave owners' never want the slaves to figure out. They will coat the planet with blood to maintain control and prevent the 'secret' or cause of all human misery suffered to be figured out or lead back to the source.
And basically the human race is filled with morons who will never figure this out because that is where 'we' are right now. THE WORLD DEBT has inflated to its maximum potential and economic activity has slowed, or stopped in some cases, and the ability of the human race to service the compound interest is at an end and Debt deflation has taken hold permanently... nothing can stop the debt deflation because debt inflation has reached maximum potential. The only thing that stops deflation in a fractional reserve banking system which has reached the maximum potential is 'Bank'ruptcy followed by collapse of the system itself until all debts are wiped out which in turn wipes out compound interest…
So now you know the 'SECRET,' which is:
COMPOUND INTEREST, NO MATTER HOW BIG OR SMALL AND IN ANY SHAPE OR FORM, LEADS TO EVENTUAL COLLAPSE OF THE FRACTIONAL RESERVE SYSTEM.
And since human civilization is dependent on fractional reserve banking it will collapse too…
Any one that doesn’t believe the above after reading this is a traitor to the human race and is in contempt of all things good...
What do we do about it? Answer: It is too late to do anything about it, or is it?
The World economy is finished…
Do you see yet? If you need evidence just ask and I will give you enough evidence to make you so sick that you will want to commit suicide so what's the point of that?
We are in the final stages of the "Good Old Days"...Fractional banking is doomed to failure...
This is how 'modern' Fractional Reserve banking has worked for 100’s of years.
Phase/Stage 1
Everyone’s favorite drug INFLATION of Debt…
Once the maximum potential for debt inflation is reached phase/stage 2 begins.
Phase/stage 2
DEFLATION of debt, How or why?
Compound interest is the price to sustain inflation. As long as you can pay the price, inflation will continue and your hopes and dreams will usually come true. Once you can not afford the payment your hopes and dreams will not come true. Simple
The only way to pay compound interest is to borrow money/create debt. Once borrowing slows or stops compound interest can not be paid and debt deflation is the result.
Aren’t we just in a mild recession or "soft spot?"
No. In the past there was 'slack' in the economic system. What is slack? 'SAVINGS' With the introduction of computers, the economists have figured how much everyone has and marketing specialists have figured out how to get it...
We are just in the beginning stages of deflation.
Phase/stage 3
'Bank'ruptcy
Complete collapse of all interconnected banks in the system. Since the US dollar is the world reserve currency the world banking system will collapse. Plain and simple.
Recap of the “LIFECYCLE” phases/stages of fractional reserve banking.
Phase/stage 1 = debt INFLATION
Phase/stage 2 = debt DEFLATION
Phase/stage 3 = 'Bank'ruptcy
Simple as 1,2,3
We are on the verge of total world economic collapse and resource wars of conquest...
It is you who own nothing...Do you think you own something? What makes you think you own something? Private property?
The entire money supply of the world is composed of debt owed to someone else...There is no money, it is a figment of your imagination...
The figment will begin to end in a few more months...and the people who created that figment will provide you with more figment scapegoats for you to consume...
You are dancing to someone else's tune all the while you think you are not...
You will play your part and are playing your part to a tee...
Don't believe me? Don't worry, unless you die very soon you have a front row seat...Then you will see what you truly own...other than the figments of your imagination, nothing of any real significance...
Yes, sign this piece of paper agreeing to pay me back...where does money come from? The current system is an evolution not a stand alone system...the debt backed by debt fractional reserve system needs an economy to begin with... the previous system was the gold backed fractional reserve system... which was not a stand alone system either and the system before that was usually a bimetal silver and gold system and barter...
The debt backed by debt fractional reserve banking system is one in which the top requests that a bank create short term debt "out of thin air" at wholesale cost to be sold to a lower member of society at retail...
Borrow $200,000 at 3% for six months to construct a house and mark it up to $300,000...then find a dreamer...someone that is convinced that life is great and he needs a house for him and his family... to sign on the dotted line and agree to pay back the loan over a 30 year period at 6%.
Net profit to the person who doesn't work for a living after expenses is let's say $40,000 pure profit...
What if it was 10 houses? That would be an increase in money supply which is debt created out of thin air owed to a bank of 3 million dollars in just six months... how about 100,000 houses like in the US in a month...an increase of the money supply that is debt created out of thin air owed to banks of around $30,000,000,000 looks like "inflation of the money supply" to me.
What does the top do with all that profit they are sucking off the masses? Using it as a basis for more wholesale debt creation out of thin air to be sold to more dreamers at retail...This continues until no more houses are needed and then what? $30,000,000,000 of created out of thin air debt disappears...unemployment rises and buddy who bought the first house loses his job but he is going to give it the old college try and survives for a year but can't make the payments any more and he decides to sell his house but guess what? the price has dropped due to all the people selling and he owes $240,000 but the house is only worth $100,000 he drives the wife and kids to her parents house because she considers him a loser and a failure and he goes to a work camp and a tree falls on him and he is dead...
But what about the house? It is repossessed by the bank and it is auctioned off for $20,000 to the original builder and he rents it out...Honey great news we can leave this misery behind and go on vacation with the kids...life is wonderful...
Simple yes but the basic mechanics of inflation and deflation are there...The absolute capitalist at the top wipes out the social capitalist...100% legitimately... Now your leftist enemy foolishly thinks that taxing the rich and giving to the poor helps but that only accelerates the suck from the bottom to the top...prices get marked up higher and profits are moved offshore...
The fractional reserve banking system controlled by a central bank is one of the planks of the communist manifesto... The Federal Reserve in the US which is owned by the Bank of England is part of this system so is the bank of Japan and all the central banks on the planet...basically
That's absolute capitalism so will you be signing any papers? Who gets the better deal the absolute capitalist or the simple minded social capitalist?
Graduated income taxes are another plank of the communist manifesto
"The way to crush the bourgeoisie is to grind them between the millstones of taxation and inflation."
----- Vladimir Ilyich Lenin <----A real useful idiot...
All the people who own the system depend on is that the Government left, right or center grows dependant on their ability to create money out of nothing...the true source of political power...
Welcome comrade...to the real world...
9 comments:
from Peter Schiff, "Paper dollars are technically Federal Reserve Notes, which means they are liabilities of the Fed. When it puts newly minted notes into circulation it does so by buying assets, usually U.S. treasuries, which it then holds on its balance sheet to offset that liability. By swapping treasuries for mortgages, the Fed effectively alters the compilation of its balance sheet and the backing of its notes.
However, backing paper money with mortgages is nothing new. The French tried it in the late 18th Century, and it lead to hyperinflation. Assignats, which were first issued in 1790 to help finance the French revolution, were backed by mortgages on confiscated church properties.
Although the stolen underlying collateral did have some value, the revolutionaries saw no reason to limit how many Assignats were printed, which resulted in massive depreciation. Within three years, price controls were introduced and failure to accept Assignats, initially an offence subject to six years in prison, was made a capital crime. By 1799 the currency was completely worthless.
If even the threat of death could not prop up the Assignat, does anyone believe that the currency could have been saved if Robespierre had forcefully mouthed a “strong Assignat policy” as President Bush is now doing with the dollar? Rather than repeating the mistakes of history we should learn from them. Our own failed experiment with the Continental currency as well as the Great Depression should prove conclusively that it is Austrian, and not French, economics we should be following."
First off people are the backing...
All those below slaving day in and day out to support those above.
PERIOD...END OF...STORY.
THE BOTTOM SUPPORTS THE TOP.
Don't botther trying to convince me that the roof supports the foundation...
Austrians?
Mentally retarded fools...They embrace interest attached to the medium of exchange...All interest compounds over time...requiring more and more resources to service the payments...and when maximum potential is reached for the bottom to support the top...the suck from the bottom to the top stops and the whole economy collapses.
I've asked many direct questions to be answered by people that claim to be austrian high priests...
They don't reply...because they can't...Because the answers will annihilate their pathetic economic religion.
Cry all you want...The Austrian economic model is of course slightly different but ultimately 100% doomed...
Peter Schiff? another mentally retarded fool...
The moron like all you morons think you can suck a % per year off the bottom forever...
The top eventually sucks the bottom dry and the whole sickenly selfish civilization collapses to dust...next.
YES IT'S INSTANT REPLAY TIME FOLKS...
"Rather than repeating the mistakes of history we should learn from them."
In previous implosions the two horse family ate a horse to survive...
YOU ALL WON"T BE EATING YOUR CARS OR TV'S OR ELECTRICTY OR OIL...etc.
The result of the Assignat implosion/French revolution?
Napoleon signed the Central bank of France into existance 1800
The revolution along with Napoleon was funded and backed by the City of London.
The result of the continental implosion/American revolution
George Washington signed the FIRST Central bank of the USA into existance 1791
The revolution along with George Washington was funded and backed by the City of London.
Of course it doesn't make sense to you...It's not supposed to...
You are the bottom/employee not the top/employer...
The top hired and fired Kennedy...get it yet?
I am stocking up on spices for the cannibalism to ensue... Be sure to keep fattening up your kids, keep em nice and tender.
Folks, the more "out there" you go the less credible you sound. Even in the worst of times there will still be enough to go around. Those that have will share, those that dont will have to hire army's to protect what they have. Its Africa that has been the true source of the extremes that you talk about. If someone starves to death in America or Europe its more than likely that it was by choice. How many starve to death in Africa in any given year.
Your rhetoric works for Africa and 3rd world countries but it will take centuries for the established wealthy nations to ever get to the point parts of Africa have been in for the past several decades.
I tell you whats crazy about the "bailout" happening... They bailout the crooked lenders who missmanaged themselves to business death... They dont give a damn about the folks who bought the homes for their families and are behind on payments. In fact they want to tax them harder so they can put more money back to the crooked lenders who have to take paper losses on forclosures they have to liquidate.
Rich people helping Rich people... Thats Government and Markets working together. If you want the downfall of the stock markets you will have to overthrow governments first... In otherwords its not gonna happen in our lifetime or our grandchildrens lifetimes. They will keep adding decimals, resetting the currency, handing out cost of living raises and society will keep on trucking. Its the land of plenty for a while.
In other words it's not gonna happen in our lifetime or our grandchildren's lifetimes.
Wait a few months -- you'll change your mind.
I recognize that any percent compound interest is a crime against all things good. Insidious greed that sucks clean all things stable and peaceful and divides the bottom against itself in search of where that interest is going to come from. It comes from nowhere.
And so when all the kings horses and all the kings men come around to collect their money at the last stages of collapse, they come back empty handed and a new currency is issued to the peasant class and a new priest is hired to bless the new money and the masses cheer at the wisdom and the kindness of the king. And so we cycle through to war and death once again.
The generation of fools will never in a million years realize that they are slaves. And their offspring have even less chance, being born into the slave class of which everyone shares equally top to bottom, every strata, every creed. Tax payers, rate payers, interests payers, license holders, stock investors, bank accounts... the iron grip on the throat of anything owned. Nothing is in fact owned unless it is hidden away and kept secret. All things visible are taxed, licensed, counted and stolen through time with one or another vehicle.
Say you own an acre of land and you want to keep nothing on it except the trees and birds. Fine, but pay your taxes forever or it will be stolen from you by the kings horses and men.
OK, you concede, you will grow trees for the lumber yard with half your land to pay the taxes and with the other half you will keep free for birds and natural things to enjoy. Fine. But get the license to sell and pay fees for the income and show your accounts balanced each year to the king. And pay your higher rate of fees and taxes now for your right to partake in this act. And by the way, your rates just went up because your neighbor is using his whole acre and so he can afford to pay higher rates and so rates go up for all. Just because the king can do it and so press you to exploit your full servitude. And so you do. Reluctantly, you enter your full land and full time into servitude in hopes of earning enough one day for a vacation to tour the kings private vineyard.
And so it goes, until you borrow money. Just one dollar. It is for an emergency operation. The bank lends the dollar to you and asks only 10% to be paid back during the year. This sounds reasonable. Except there is no 10%. It wasn't printed. It doesn't exist. And so you go to court and lose. Pay fees but have no money. That is fine, the king will take your land to cover the fees, except they don't balance out. The penalty is higher than the balance of all you own. So the king takes all you own and puts you into the penal system so that you can work off the remaining debt. Within 10 or 20 years you will be free and then willingly go into bondage of a fee-paying landowner to eat. And the process perpetuates.
To Hypertiger:
Do you have any sources for your statements that the Napoleon war was backed by the city of London? And the US revolution was funded by the city of London? It gets kind of shady/blury to make such statements without proper sources.
Secondly, I think you have a few good points but I don't think it is fruitful in any way to define other people as morons/idiots just because they happens to disagre. Statements will talk for themself. True or false. There is no need to refer to people in general as low-life just because they have other opinions then yourself. Those who live, will see who represents the real truth, right?
To Archbuilder:
I don't think the middle class has looked at themself as slaves. No need to paint this darker than necessary. You got a system that eventually has to break down sometime down that road (as everything else in history, nothing lasts forever) ... but till it happens, a lot of people had a really good life. Let us not forget that in the process.
I am not into conspiracy models of aliens running the world or TPTM and all that stuff. Rich people taking care of their wealth and watching out for eachother is nothing new.
Sources?
It's up to you to choose to walk the path or not...
Freedom?
You will never obtain it if you are or become dependant on others to do your thinking for you.
You have not come here in search of truth...You have come here looking for support for and/or to promote you cherished delusions.
It's very simple now...Back before the Internet you needed to mine used book stores and libraries...
Sometimes for years to find information...leads...
Now just input French revolution city of london into google and you get stuff like this in seconds.
"Long before revolution turned to thunder and lightning the storm had been tamped in London. There lay stored away the greater part of the world’s stock of gold and silver, and, as after the Seven Years’ War nearly every country in Europe had to borrow from London, the basis of European economic structure was changed from wealth to debt. Among these nations France became the more heavily involved, as she was compelled to borrow large sums in order to pay for British colonial imports and her own share of the cost of the war of the American Rebellion."
It's not my fault you choose to be lazy...
And I don't care how you or anyone else precieves yourself...
If slaves that are slaves don't think or know they are slaves then that is far better than slaves that think or know they are slaves.
"While boasting of our noble deeds we're careful to conceal the ugly fact that by an iniquitous money system we have nationalized a system of oppression which, though more refined, is not less cruel than the old system of chattel slavery."
Horace Greeley.
(1811-1872) Editor of the New York Tribune, ran against Ulysses Grant for presidency.
But as long as you are one of the drones obtaining the "so called" good life then I should just shut up and let you enjoy the delusion you have fallen in love with.
It was your choice to come here and attempt to order people around...
as the population of the USA grows older, does this mean those persons drop from productivity and cause a "death" in demand for borrowing? as americans average age grows, I am sure this drops demand for new loans and therefore deflation.
deflation and inflation are widely misused terms. The original and I think best use is money supply. When they print money they inflate money supply like filling a pool full of water. Prices of everything goes up and we think the economy is growing when actually we are just watching the natural effects of the printing machine. Deflation on this basis never happens. The printers don't remove net money supply. Why would they? Fund appreciation of the value of money by destroying their own wealth? No. Deflation of money supply never happens. What happens is that people for a time stop taking credit because they are broke. But the printing machine keeps right on going. Inflation of the money supply is a constant. No fiat money system in the world ever survived... all go to zero every time. None revalue and become a good investment. Ever hear someone say, "buy dollars and hold them for 100 years... they keep appreciating in value." No. Opposite. And so is the case 100& of the time... Zero bound always.
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