Great Debasement
Endless money creation
The termination of the longest business cycle expansion in history must be nearing its end soon. With record highs in the stock market, after a 12-year march to the top, with stock prices more than 300% and real estate 200% higher than they were in 2009. These events were made possible by a record expansion of the base money supply, in other words inflation.
The whole programme is grotesque and unnatural it comprises; spend, borrow, print, that leads to boom, bubble, crash, pain, panic, bailout, and then again spend, borrow, print, boom, bubble, crash, pain, panic, bailout. But the weak link in this unpredictable chain is the paper currency. The central banks can print them, but they cannot control their value.
With their continuing money printing program, the central banks have added more money to the monetary system in the last 10 years than it added in the previous 90 years of their existence. Not only that, by lowering its key interest rate below the level of consumer price increases, it made borrowing more attractive than saving. Borrowed money, too, about $20 trillion has been added to each of the larger nations total debt in the last 10 years, with no end in sight. All adds to the available “money supply.” That’s an inflation that’s vaster than ever before created in all of human history, outside of World War II.
Inflation is a poorly understood financial concept. It has nothing to do with price indexes, such as the consumer- or production- price index. The trust in the reliability of these measurement tools stems from the 1970s, when inflation flowed into hard assets and commodities.
Inflation, by definition, experience and theory, increases the amount of money in circulation. But it does not increase the amount of goods people can buy with it. The law of supply and demand tells that, under equal conditions, prices rise. This is another way of saying the central banks have “debased” the currency; money becomes less valuable. Losing purchasing power, as each unit buys less products or services.
The question arises: Where has the money and credit gone? Not into commodities, like gold and silver. These have been suppressed – manipulated – in a bear market. But, housing prices have rebounded going up by 200%, and tend to be going crazy. Stocks have gone up tremendously by 300%, trading at bubble levels. But the worst are the bond markets, with junk bonds in particular, trading at highly inflated prices, to keep interest rates down.
If the new created money goes into the system through the consumer channel, tax cuts, spending increases, giveaway programs, wars, etc. People can expect consumer prices to rise too. If it goes into the system via monetary policy, lower interest rates or QE, the result is more likely to be an increase in capital prices, like stocks, real estate and bonds. It is not a coincidence that the rich got so much richer in the last 12 years than at any other period in history. In effect, the Central Bank gave them the money.
The only real asset most people have is their time. By 2018, it took about twice as many hours of work for the average man to buy the average house or motor car as it had in the 1970s. The Central Banks’ inflation inflated the asset prices of the rich; it added not a second to the working man’s time. Nor did it increase the wealth of the economy.
Inflation is theft by your government
Inflation is just a trick, a deceit. Imagine if the government sent everyone a check for $1 million. Everyone would be rich, right? Of course not. Prices would rise. And soon everybody will be back where they started. But in between your check is opened and prices didn’t rise, you would feel being rich. And spend as though you were rich. Merchants and manufacturers would step up output to meet the new demand. So, it would seem like a real boom just for a short while.
This is the so-called “wealth effect” that governments are banking on. If higher stock prices make people feel richer, they’ll go out and spend! But a business can’t really make a profit by selling goods and services to people who can’t really afford them. And it wouldn’t be long before consumers, businesses and investors realised that they had overspent, overbuilt and over-extended themselves. Then, they’d have to cut back which is producing a bust that would be equal and opposite to the fake boom that preceded it.
Every boom that is based on inflation, rather than on real earnings, is doomed to fail. Because, as French economist Jean-Baptiste Say put it, you buy products with products, not with money. He meant that real wealth is the ability to provide goods and services to others. Which ultimately is a measure of time and productivity. Time cannot be increased. Only productivity can be improved. But it is a long, demanding process.
In other words; it doesn’t help to hand out pieces of paper with ink on them. Instead of stimulating growth and productivity, inflation does just the opposite. It distorts, disguises and censors the key price information that people need to make decisions.
The result is always negative; bubbles, crises, and lower growth rates. Smooth out the growth rates, by looking at the trailing 10-year average, of the last 20 years, and you see that they are barely half of those of the previous 20 years. Proving; It is inflating or die. Real GDP growth is declining. A recession is coming. And the only way the central banks can keep this inflationary expansion going is to inflate more.
The economy is balancing on the critical edge of destructive deflation and runaway inflation. Prices could quickly and unexpectedly fall or rise, one way or the other. The occurrence of relative price stability is a product of deflation and inflation acting at the same time. Far from price stability, it is actually an extremely unstable situation.
In the period from 2009 – 2018 we have experienced deflation because the world is in a depression, but governments cannot tolerate deflation, so they have to cause inflation. That’s why excessive money printing has been going on for so long. There is pressure from both sides, deflation against inflation – depression against money-printing – one pressure manifestation against the other. Deflation and inflation both fight on the edge of a knife. Eventually, one side wins, but the battle could go on for a long time before one side wears out the other side.
As, since 2008 the world is in a depression, which obviously is deflationary, debtors sell assets to raise cash and pay their debts. That pushes down asset prices. Falling asset prices, in turn, put other investors in distress, causing further asset sales. So, it goes on in a downward price spiral.
Printing money is logically inflationary. With more money chasing a given quantity of goods and services, the prices of those goods and services tend to rise. – If central banks stop causing inflation, deflation will quickly overwhelm the economy. If central banks don’t give up and keep printing money to stop deflation, they will eventually get more inflation than expected. When central banks print reserves far in excess of domestic savings, the result is inevitably inflation, followed by hyperinflation.
Central banks can monetise everything, leading to unprecedented asset bubbles which, though only for the time being, boosts investor and consumer confidence. However, they can’t print trade – that is the all important driver of growth in a globalised world, which arose long before central banks were set to monetise over $1 trillion in bonds each and every year to keep first interest rates too low, and secondly to mask the fact that the world is deep in debt, globally. They successfully destroy the currencies, by stealing from the people, and boosting the stock market, and not seeing significant inflation, they tell the public, to continuing to print more money to boost the economy. That is clearly a pertinent lie.
Is there a trace of hope for the better?
President Trump has accomplished what no other president could, or dared. During his Asian trip; he got the nations together in Asia. He solved the war in Syria and stabilised the Middle East in the process. He put an end to the war in Afghanistan. And, he met with all the global leaders who came to visit him. This reveals the high regard in which he is held by world leaders. The agreements reached and relationships built were incredible and unprecedented. He did a lot of good work for, not only Americans, but for all of Humanity.
Returning from this historic trip to Asia, he appears to have brokered a $250 billion dollar ‘Fair Trade’ deal with China. Take note that ‘Fair Trade’ can only be accomplished when goods, services, and products are valued properly based on what they are. The corresponding currency would have to reflect this value for trade to be fair. This implies it should be paid for with gold backed money! – He also spoke to his Nation describing the success of his trips, by starting with a statement that the “US is back!” or in a state of recovery.
President Trump met with Putin and Xi Jinxing off the record. President Jokowi, of Indonesia, was met as well, in his function and as the representative of the Soekarno M1 gold holdings in the collateral accounts. This means that the BIS, the World Bank, the IMF, the European Central Bank, the Federal Reserve Board, the Bank of Japan, Bank of England, etc. must be taken out of Rothschild’s Khazarian control. They are not going to just hand over the keys, so at the end of the day, it will most likely require men with guns to do the job. That is why U.S., Chinese, and Russian military forces are humanity’s best hope.
Everyone is paying more for less
Inflation is nothing more than legalised swindle by your government; it stands at only two percent, at least that is what the manipulated Statistics say. But these numbers don’t portray the truth. The real rate is probably closer to 9%, maybe even higher. Who knows? All published inflation data are fabrications, as these numbers are made up to suit the government. Lower inflation numbers in statistics look better, and they don’t show the theft committed by governments.
For example, an inflation rate of 8% annually means that $100,000 in cash today would be worth only $46,319 in 10 years. That’s more than half its value evaporated into thin air. In 20 years, it would only be worth $21,455. In 30 years, it would be worth an abysmal $9,938. What can you do to protect yourself? – The only answer is to buy precious metals for any amount you have deposited in the bank and don’t immediately need.
Central Banks drastically expanded the money supply after the 2008 financial crisis. In simple terms, the continual climb in CPI statistics means everyone is paying more for less. The purchasing power of the major currencies fell officially by 2.93% in May compared to a year earlier, the fastest drop since November 2011.
Nonetheless, despite the reality of tens of trillions of dollars printed over the past ten years and grand scale monetisation by Central Banks in the U.S. Europe, UK, and Japan, most banks remain underfunded and would be insolvent if they had to administer true accounting practices.
Two or 3 percent inflation may not sound like much, but increases of this magnitude really start to add up over time. In just five years, you’re looking at a 10% to 15% price increase – or more correctly a 10 to 15% loss in purchasing power, which signifies the debasement of your hard-earned money. The dirty little secret is that prices are going up even faster than the CPI indicates. Governments do all kinds of accounting tricks to manipulate the CPI numbers lower.
The people economy
This destructive central bank policy has gone too far to stop the inevitable collapse of the financial system. But that does not mean that it is too late for individuals to protect themselves, with gold and silver. If we enter this final phase, there will be panic on the financial markets, with governments and central banks taking draconian measures. Here are some of the potential risks against which all people need to protect themselves.
The collapse of the currency leads to the destruction of capital. Capital controls will therefore be introduced which will make it impossible to take money out of a bank or the country. The necessary bailins for banks are going to steal your money in an attempt to bail out the financial system. Through forced investments, for example, through compulsory purchase of treasury certificates from your bank or through pension fund managers. In order to prevent the collapse risks, e.g. for shares and bonds, these are mortgaged by the bank, leaving people without a penny to spend. In the final phase, bank failures will break out everywhere, causing your investments to disappear if these banks fail.
This moment has been created by the Deep State, for the benefit of the International Monetary Fund – IMF that will be in charge of implementing the new central bank financial system, the so-called reset. Everything around the IMF is intended to mislead people, starting with the name. The IMF is not really a ‘fund’ in the sense of a donation or joint investment funds; it functions as the central bank of the world, taking deposits, which are called ‘loans’, from countries around the world and granting loans to its members. The IMF prints money like all central banks, but this world money has the opaque name of special drawing rights, called SDRs. Financial elites around the world use strange names for what they do so that people do not understand what it really is. The IMF can print these SDRs. But they are not spent on the people.
Ordinary people will not be able to use, touch or feel these SDRs. Even, they will not be able to spend them. SDRs are not money to be used in cash, it is exclusively made available electronically. The SDRs will be used to equalise the ‘balance-of-payments’ between countries, the price of oil and perhaps the annual accounts of the 100 largest DS-companies.
The consequences for savers and investors will be disastrous inflationary. The only difference is that current inflation will come from central banks, but in the future come from SDRs. That means that when people try to blame the central bankers, they will say it is not them; it is those people at the IMF. Go and blame them. Nobody knows where they are. So the SDR is just a way of bringing inflation through the back door in. The IMF is designed for the insiders to make it hard for outsiders to have any idea of what is going on.
Think about; the central banks have deliberately caused the current and all previous economic crises. Today’s economy is a central bank economy and not a people’s economy. This rotten DS-economy cannot be repaired, the new people’s economy is replacing it, free from intervention and manipulation by central bankers. In short, an economy controlled by the people themselves on the basis of supply and demand, a ‘fair trade economy’.
Without even realising it, the central banks have been side-lined. Readers can now hopefully imagine how dangerous this situation can be for all of us. This aspect, too, creates an urgency to have more awake people. As soon as 50% or more people are awake, the old central bank financial system will be dissolved and replaced by the QFS, based on the people’s economy. Then, with great urgency, the day of true unity for humanity can dawn. After that day, lasting peace will be guaranteed. With a money system under the control of the people without inflation and corruption.
That is when GESARA and the new QFS will be introduced, in order to save the world’s population from a major disaster. GESARA is the Global Economic Security and Reform Act. Not to be confused with the “Great Reset” of the Deep State’s New World Order.
The Global Currency Reset (GCR) makes all gold backed currencies worldwide the standard, while the ‘Great Reset’ was the NWO’s idea for the introduction of the One World Government, with full seizure of your personal freedom, to be made impossible by the introduction of GESARA.
Generations after us will honour this day with respect for human unity, and keep the peace on planet Earth. Many of us have prayed for this to happen. But now, we don’t have to wait long for it. If the swamp is drained, corrupt politicians and criminals will be dealt with properly and fairly.
yogaesoteric
January 21, 2021