FORWARD: I have grave concerns about the feckless, self-serving and myopic actions of those laughingly thought to be “in charge” of the financial health our country.
The lack of intelligent foresight in ignoring the consequence of throwing endless wads of cash at the economic and financial maelström in this country is unconscionable to anyone with simple common sense or cents.
The cartoon above is from the Chicago Tribune 1934. It is a sober reminder that we’ve been here before and we didn’t learn our lesson the last time. We let the financial wolves back in the hen-house again! The cartoon also has a headline particularly relevant to today’s economy, “Planned Economy or Planned Destruction?”
Big Ben Bernanke and Little Timmy Geithner the head of the Federal Reserve and the Treasury respectively, just aren’t thinking straight. We’re told, “Don’t worry – be happy; just go to the mall and spend more money. We’ve got it all under control.” Or do they? The constant diet of disinformation from media of all types is giving me a serious case of truth decay.
How this cabal can convince themselves that this is not just the latest chapter of the biggest confidence game ever is beyond me. Even the consummate con-man, Bernie Madoff, who defrauded investors of over $65 billion, was dealing in chump change when measured against the current con being run on us by the government – now he seems like a small time rip-off artist by comparison.
1) Money is a matter of confidence and is valuable only to the degree that it is exchangeable by the people using it. When that confidence is eroded, people become less willing to accept it as payment for the goods they’re selling.
2) Every fiat system of money (fiat money = made legal tender by force of government decree), has failed and our current one in the USA is proceeding along the same lines at an ever-accelerating velocity.
3) When the elected government arbitrarily began to increase (inflate) the money supply exponentially with the instantaneous creation of money by an entry on a computer, we were doomed. The hen-house wolf and he’s licking his insatiable financial chops. It’s the biggest Ponzi scheme in the history of the planet. The ones at the top have already made their grab at the cash to make sure they are not affected by the coming debacle, leaving the rest of us holding the bag. But it’s worse than that.
4) The wealth of the world is the real things of the world – real things that are produced and end up with a product that can be exchanged for something else of value, or the natural resources of country – these are real. Money is not real. It’s a made-up concept used to facilitate the easy exchange of good and services. It works only so long as everyone continues to go along with it.
5) Hyper-inflation is the terminal stage of any fiat currency. In hyper-inflation money loses most of its value practically overnight. It’s often cause by increasing regular inflation to the point where all confidence in money is lost. In a fiat system, the value of money is based on confidence, and once that confidence is gone, money becomes irreversibly worthless, regardless of its scarcity. Gold has eventually replaced every fiat currency for the past 3000 years.
Like sour milk, when money starts to smell bad, people don’t want to hang on to it. In the long run, money only works as long as it’s backed-up by real things of a country, things like produce and natural resources. Then it has some value and confidence is retained. On the contrary, a fiat money is only backed-up by a government forcing you to accept it.
It’s the ultimate game of financial musical chairs. It’s a financial version of a “final solution” to total global economic domination.
So, what can you do in this deadly game of financial musical chairs? Make sure you’re not the last one standing when they stop the music!
Don’t be the last one standing there holding all your assets in a bag containing nothing but worthless paper funny-money! Take action now to get some of the real things (commodities like gold and silver, housing, land, business etc. – real things, not paper substitutes) of the world as your asset base. You may not have the opportunity to do so later. Although there are factors that may allow the country and the world to muddle along for some time, when the end of a financial system occurs, it does so with amazing ferocity and velocity. It sweeps across a country or a planet like wild-fire. Only those prepared for such contingencies will survive.
Make sure you’re in that crowd. Take action now to ensure you’re not the last one standing when the music stops!
daniel w. jacobs
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