Thursday, March 31, 2011

Too Much Money is NOT The Cause of Hyperinflation!

Almost Every Phony Expert Says That Too Much Money is the Cause of Eventual Hyperinflation.

It's a Banker's Lie.

If there is hyperinflation, THIS will be the beginning of its cause!

Hyperinflation occurs when banks raise the interest rates into unpayable territory - mid to high triple digits. They do this knowingly and by design in order to CAUSE hyperinflation and crash an economy. Then they buy up the assets at pennies on the dollar, thereby consolidating control.

Argentina, Zimbabwe, Greece.

And scores of other countries have experienced it first-hand.

Banks do near zero physical labor, lend phantom digits that they have convinced the public is "money" that belongs to the bank and that the public must trade actual labor for. A wicked lie.

Yes is could happen here - it IS happening here, if you do not get educated on how debt money works, you will not even know what's wrong, let alone how to fix it. Their robbery will be near effortless.

The "too much money" lie can be easily understood once you understand what happens to principal payments when a loan payment is made. They are EXTINGUISHED from circulation.

So, everyone who made a payment on a mortgage, a car, a student loan, a credit card or other loan - the principal amount of their payment has been written off the books as "paid". It entered the system as a loan and it got zeroed out when payment was made. Gone. It no longer exists in the system. You can't "work" for it - it no longer exists. That means that the supply of (debt-based) money is not growing as fast as the debt. It's not too much money but too much debt that is the problem. This truth is so simple that it repels the mind.

If banks raise the interest rates "because there is too much money" or "they are printing too much money" - a really big lie - and they think that all that awful money in the system will lead to hyperinflation, the heightened interest rates get factored into the cost of doing business, not unlike higher fuel prices cause a general rise in prices. So "debt service" or interest due on debt causes the cost of doing business to rise. Prices rise along with the rise in interest rates - it's a "cost of doing business".

If the banks tell a big enough lie and fully bring out the hyperinflation "boogie man" - the headlines will read something like, "Banks Raise Interest Rates to Unprecedented Levels to Combat Hyperinflation". THAT will trigger hyperinflation - it's a function of the banks raising rates. But NOT "too much money".

In fact, if money is "final payment" (as it should be, but now is not), then we have NO money in the system because all we have is debt, not final payment. There is NO SUCH THING AS DEBT FREE MONEY IN THE U.S. Someone may try to argue that coin is debt free, but you cannot buy any of it unless you use debt-based money. So, in the aggregate, the statement stands as true.

Read further on this blog to find the solution. You won't have to look far.


Thursday, March 10, 2011

Is Utah Making The Right Choice?

Great. Now Everyone's a Gold Miner.

Here are some problems with this well meaning bill:
1. It limits the people to gold and silver, rather than the principals that make gold and silver work - namely that you do not have to borrow it for it to exist as a medium of exchange, just work for it. If the bill gets signed then the only way to have a debt free medium of exchange, is to mine some more gold. It would be better to use infrastructure than gold - same principals, much better outcome.
2. There is not enough gold to to run the economy.
3. As more gold flows to Utah, the price will trend up as demand goes up. Then, presumably more people will get into gold mining, to meet the growing demand and "cash in" on the next big gold rush - especially if the idea is enacted in other areas.
4. Banks will buy up the gold with their unlimited "checkbook money" causing the price to go even higher.
5. Banks will also buy up more of the mines they do not already own and eventually will price fix and create scarcity - like they did in Zimbabwe. Like they always do.
6. The people will STILL be dependant on the banks and MANY will slip deeper into poverty. Again, see Zimbabwe.
7. A GREAT opportunity will be missed, to shed this fanatic religiosity over gold and the "gold standard", that people don't really understand anyway, and to move to "wealth based money" using the same principals as gold, while allowing a rebuilding of America's infrastructure, jobs for anyone who wants one and a cleaner, more just society. Missed.
Gold is not the answer. Wealth based money is.