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55 // The Great God, Money // MoneyGodMoney.com // Inflation - Deficit Financing // 17 July 2011
Real money defined is gold and silver. Money is a form of goods and services.
Fake money defined is fiat money, make-believe money, the illusion of money, and federal reserve
bank notes. Real money has 11 main attributes - measure of value, medium of exchange, storage of wealth, and more.
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. Inflation Inflation Is the Product of Deficit Financing
Because they can't can't
steal all the money, . |
Inflation is the loss in value
of
Fiat Money.²
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. An Economic Analogy: Think of the economy as a very large auction house with many sellers and many buyers. Imagine an auction house that sells food, clothing, and shelter. Imagine that the buyers are like the average person in that they have a rather limited amount of money to spend. The prices of the items sold will be rather stable and everyone has a reasonable equal opportunity to purchase items. Buyers will select the items they want and bid with their limited dollars on those items. The auction house sellers have a the choice of creating and selling a rather large supply of a wide variety of goods and services. The overall capacity of the auction house sellers to create and sell products has its limits so the sellers in the auction house choose to sell the goods and services that bring them the most profit. An Example: Among the million of items for sale in this auction house, let's focus on a sixteen-ounce, loaf of bread. At the moment, the sellers are willing to put their time, effort, and resources into baking and selling bread at nineteen cents a loaf. (In 1951, a loaf of bread and a quart of milk each cost nineteen cents) The buyers are willing to pay nineteen cents a loaf, so everyone gets to buy as much bread as they want at nineteen cents a loaf. Everything is fine. Now imagine one group of buyers in the auction house suddenly having a lot more money to spend than everybody else. Two things start to happen. First, they will begin buying more goods and services. The Law of Supply and Demand tells us that if the supply stays the same and the demand increases, the price will rise. Second, a wise seller will come along and in looking for a way to make more money, he'll put his bread in a bag and say, "My bread is better than everyone else's, and I'm selling it for only 25¢ per loaf." The advertising and the bag cost him a penny more per loaf but his higher price gives him a net gain of 5¢ per loaf. Those with the extra money will start buying what they are told is the better bread at 25¢ per loaf. Pretty soon other sellers follow suit and when the market stabilizes again, everyone winds up paying 23¢ a loaf for bread. All buyer are now paying not only for the bread, they are paying for the bag and for a bunch of image peddlers telling everyone that this or that loaf of bread is better. Because the wealthy people are inclined to bid more for the item than those who have a lesser amount of money, the above principle applies to all goods and services, particularly for products that have a limited supply such as land and houses. As a result, everything ends up being sold for more dollars. |
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. The Producer of Inflation: In the above example, the government agents are the people who suddenly have all this extra money to spend. Because they control the fiat money supply, they just declared themselves to have more money. They say they borrowed it. When the government "borrows" money and spends it, it is not actually borrowing anything. It's a bookkeeping entry. (See The Federal Reserve.)² It is simply, arbitrarily, increasing the fiat money supply and dumping it into the auction house. The resultant rise in prices is called inflation. What inflation actually does is take the value out of the fiat money that is already in the system. For example, a sixteen ounce loaf of bread that cost nineteen cents in 1950 now (in 2008) costs anywhere from a dollar and a half to three dollars. The relative value of goods and services, when compared with each other, has remained rather stable. What has drastically changed is the value of money. So the next time someone tells you the price of such and such product has risen, you'll know that really what has happened is that the value of your money has gone down again. Those who control your government have applied an age old con artist trick: If you can't steal the
money, |
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. Bush Secretly Stealing Your Money: Here's another thing that most people don't understand. Under our present economic circumstances (July 2008) the average person is finding it much harder to be financially solvent, to make ends meet, to pay all his/her bills. Why? Again it goes back to the government deficit financing. You and I are paying more dollars for our goods and services, --- opportunities are fewer --- jobs are paying fewer dollars --- and all the rest of our economic woes. Each of these manifestations is the indirect, hidden result of Bush and his cronies deficit spending the 500 billion dollars a year that they don't have. Historical Precedence? The concept of printing fiat money (paper money with no intrinsic value and nothing, like gold of sliver, to back it up) goes all the way back to Benjamin Franklin. He and his American revolutionary compatriots printed over two-hundred million "dollars" in fake money. They knew that the more fiat money they printed, the less value each note had. By the end of the war the printed bills were almost useless. The same thing happened in Germany in 1922 when the government printed so many bills that all of them became virtually worthless. Deficit spending was also the cause of the 1929 stock market crash and the resultant depression of the 1930's. The same thing is happening (is currently in process) today in the United States. As you must have noticed, the value of the American dollar is shrinking rapidly. The main difference between today and Ben Franklin's day is that instead of printing paper money, most of the so-called money is simply entered into a computer-equivalent of a ledger sheet as an asset. Here's how the scam works. The Government buys huge amounts of military hardware and the like from the people who own the corporations that finance elections. The corporations spend or otherwise distribute the money into the economy. They get current value for their money. This huge glut of new fiat money pumped into the system causes value of all the dollars to go down. Those who receive the money spend it at a reduced value. In other words, for the second cycle of money spenders, it now takes more dollars to buy the same amount of goods and/or services. The cycle keeps going until there is no value left in the fiat money. While this is going on, the wealthy people buy tangible goods such as real estate, gold, silver, fine art, and so forth. When the dollar declines, their holdings maintain their value. Another trick is to buy real estate and mortgage it as much as possible. Then later, they pay off their mortgage with the nearly worthless dollars. The bottom line is that, in today's economy, (2008) the average person is getting ripped off. Everyone holding assets in the form of dollars or promises of future payments in dollars, (or in any way dependent upon dollars as a measure of value) gets swindled. It's all perfectly legal. It's also morally and ethically bankrupt. And every bit of it is intentionally and consciously set up by our handy dandy, so-called leaders. |
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. The Gold Standard: If you read the American Constitution, you'll notice that only gold and silver were considered money. Why? Because gold and silver have an intrinsic value; they are worth something in and of themselves. You can't manipulate and steal the value out of gold and silver. This is why the original paper money was guaranteed by what was called the gold standard. In your great grandparents days, they could go to their bank and exchange thirty-five dollars in paper money for an ounce of gold. The value of the paper dollars was guaranteed. Today, that guarantee is gone and your dollars are only worth what someone else will give you for them. Simple supply and demand economics tells us the the more dollars there are, the less each one is worth. If you can't steal the money, steal the value out of the money. |
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. Why does the Economy look good? It looks good because Bush and Company are pumping a large portion of the 500 billion make-believe dollars every year into the section of the economy that manufactures military hardware and other tools of destruction. They build tools of destruction and then destroy them so they don't need consumers, they don't need people with money to buy this type of product. They also spend more fiat money rebuilding what they have destroyed. Here too, they don't need you and me to buy this type of product. (Unless of course, you are in the market for a bridge or a power plant.) Teachers, health care workers, the elderly, the general public, and you and I are simply left out of the loop. We (the general public) always pays all the bills for our so-called leaders. We just do so behind several degrees of separation.² We do the dying in the useless wars! We do the suffering! We experience the misery and the deprivation. And we experience the growing worthlessness of our hard earned money without even knowing it! |
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The Truth About This section is so significant that, we've given it its own page. Please go to the page titled: Why Your Money " Ain't What It Used To Be" . |
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Silencing the Opposition It didn't take the advice of a genius for the behind-the-scenes leaders of the world to figure out that they couldn't steal the people's money directly. After the great depression and prior the the hippie revolution of the 1960's deficit financing (inflation) was not extensively used as a tool to steal from the public. Their primary tools were the money collected as interest on loans of non-existent money by way or the Federal Reserve and the interest collected from the ownership of corporate stock. As a result of the hippie rebellion of the 1960's, those who run the world realized that if they were to maintain the status quo, they had to eliminate or stifle any opposition from the public. The middle class had to be squashed. They had to be silenced. But they couldn't just tax the middle class into oblivion. That would not work. They had to hide their theft or their puppet politicians would get thrown out of office! Secret or silent tools needed to be set up. Four main tools were available. Eliminate the remnants of the gold standard. Outlaw mind-opening drugs such as LSD, iowaska, magic mushrooms and the like. Peddle mind-numbing drugs such as cocaine, alcohol, nicotine, and religious fundamentalism. Controlling most or all of the mass media, and then use those outlets to peddle false beliefs. The new rule was, "Build fences out of beliefs, not out stone and steel." This grew out of the Mind control research of the 1950's. It evolved into mass media mind control. It's commercial advertising applied to politics. . |
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It's wakeup time. If you want to put an end to this rip off, support the creation of The New Corporate World. The NCW project is incredibly simple in its initial design and yet it has the potential to dramatically change the world. If you are not already familiar with this concept, please see our introductory page at: |
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Six Steps That Will Change Your World The Peaceful Revolution .com How to Return to Economic Sanity Foundation Power The Magic Power of Forgiving Grandmother Power |
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