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Lynette Zang - Explains the Banking Crisis (Canadian Prepper)

JamesRoss - 181 Views
Published on 31 Mar 2023 / In People and Blogs

Things are made INTENTIONALLY COMPLEX so we don't ask questions and we ASSUME they know what they are doing. We need to simply understand what Money is.

What is Money? Money was pitched so society could specialize - we could have a banker, a farmer, lawyer, etc. They tried lots of things as money but only Gold met all the criteria.

What is the original Criteria?
1. A Tool of Measure.
2. A Tool of Barter.
3. A Short Term Store of Value to insure you are Fairly Paid for your Labor.
4. A Long Term Store of Value for When you use that Money you are Fairly Paid for your Labor.

This created two challenges, one for governments and one for corporations. Governments wanted to TAX you, but if we were on a Gold and Silver standard we would know about it and if we wanted to trade for physical gold we could walk into the bank with our gold back money certificates and walk out with EQUAL Value Gold.

This allowed the PEOPLE to have control because it LIMITED how much DEBT the Government could issue.

The government wanted a way to TAX you without you knowing about it and NOT to have to go through Legislation to get it approved.

Corporations wanted to pay you LESS. They knew if you were making $20 an hour you wouldn't accept them to change it to $10 out of the Blue.

HOWEVER, if you could make that $20 spend like $10 you wouldn't notice and wouldn't complain. So, they Transitioned us in 1913 when Wilson approved the Federal Reserve into the FIAT System.

Fiat means by decree - or a Formal Authorization. The fiat was Government backed and Inflation was INTENTIONALLY built into the system. This allowed government to have an almost INVISIBLE Inflation Tax -- it is not invisible any longer.

When money is created / printed the Central Banks receive the money first, then Banks and then Government. Every time money is created we have inflation.

Inflation causes Nominal Confusion. For example if you had a $20 bill 20 years ago and a $20 bill today, nominally it is still the same, but what it would buy you 20 years ago compared to today is much different.

We want PRICE STABILITY - where we don't have to ask for more money for our Labor.

In 1971 Nixon completely took gold out of the system.

Today, we are at the very END of the Lifecycle of the Monetary System. The government has not been held accountable for their spending.

There is one way to fight inflation and that is with deflation and you fight deflation with inflation. The main tool the Federal Reserve has is to manipulate interest rates.

When the economy slows they DROP or LOWER Interest Rates which encourages borrowing, new money being created and more spending. Every time more money is created the money in your pocket LOSES Value.

We are now at the end of this financial systems lifecycle.

How do we know this?

The Central Bank has two tools to maintain stability: 1. Interest Rates - which has been around ZERO since the Mortgage Back Security crash of 2008.

And so on...

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