Central banks peddle only one thing … Debt!

Before the existence of the Western central banking system and the Federal Reserve, the U.S. Treasury Dept. “coined” and distributed the nations money. There was no private central bank creating money out of thin air (debt) and loaning it, at interest, to the U.S. government. In other words, before the creation of the Federal Reserve, the government created the nations money, with no debt attached to it and was certainly not paying a cabal of private banks, interest on money that didn’t exist. This “no debt” money was gold and silver.

A simple concept that seems to be excruciatingly difficult for many people to comprehend is the idea of gold and silver as money. It’s not a coincidence that gold and silver were used as money for thousands of years, all over the world, until about 45 years ago. It’s absurd to believe that 45 years ago people suddenly had a spiritual awakening and decided gold and silver are suddenly worthless pieces of rock. It’s equally as absurd to believe that if people had been told the truth about this new money system, that they would have approved of it. They would not have.

In fact, the truth is: money is now created from nothing; we the people must pay interest on this counterfeit money; all money is debt; the debt level must always increase or this gigantic Ponzi Scheme will come crashing down; every country this type of debt scheme has ever been attempted in, has had a 100% failure rate; this debt system has been used by the wealthy parasitic elite class, over and over again, to steal the people’s wealth.

As Henry Ford said, “It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning”.

Another very simple concept that people have problems with is the idea of intrinsic value. More specifically, what has and what does not have intrinsic value. Does something that takes a lot of energy, massive amounts of technical ability and innovation, a huge continuous supply chain of products and services, a large skilled workforce, expensive capital equipment and tremendous business, management and accounting skills, to produce, have intrinsic value? Of course it does and of course I’m talking about gold and silver.

Compare this to the creation of debt (fiat currency) by a central banker. Simply pressing a few keys on a computer keyboard is all it takes for the Federal Reserve to create trillions of dollars out of thin air. They can just as easily destroy or take out of circulation trillions of dollars with the same keys. How in the world did we allow a money monopoly – which is exactly what these central banks are – to have this absolute and total control of our money? It was done via lies, secret proceedings and deceit.

I believe the largest financial/economic bubble in history has finally found its pin. Was the pin the crashing oil price, the minuscule 1/4% interest rate hike by the Fed or simply the fact that investors have finally come out of their stupors and woken up to the fact that you cannot fix a problem that was caused by too much debt, by creating more debt? Paying debt, with more debt, on top of more debt, is the definition of a Ponzi Scheme and it is insane.

How will the Federal Reserve react this time? Almost certainly they will react the same way they did the last two times their bubbles were pricked, by lowering interest rates and printing money or “Quantitative Easing” In fact, I will go further and say that they have no other tools in their empty tool chest other than to monetize the debt (print money) and lower interest rates. This time will be different, however. This time they will print and create a mountain of debt so large that their previous mountains of debt will appear as nothing more than speed bumps. They will also take interest rates into negative territory, as several European countries, and Japan have already done.

This is the end game scenario playing out for the U.S. dollar as the world reserve currency. (For the past several hundred years the world reserve currency has been replaced about every 40 to 50 years or so). Countries around the world are sick and tired of manufacturing products to “sell” to the U.S. in exchange for more debt.

The largest export from the U.S. is debt, denominated in U.S. Treasuries. In exchange for this debt other countries like China send us actual stuff. Most of these countries understand that these Treasuries are nothing more than IOUs, that will never be paid back. This is why, in the last year, countries from around the world have begun to dump U.S. Treasuries at an ever increasing rate, which forces the Federal Reserve to buy this debt. The Fed is going to have to print enormous amounts of money in order to purchase this ever increasing pile of “hot” money, because nobody else will buy it. They will also bring interest rates into negative territory.

They will need a mouth piece to “sell” this idea to the people.

Enter Corporate Media mouthpiece Paul “I Was Wrong Again” Krugman. They rolled out this economic “expert” during the Tech bubble as one of the most vocal cheerleaders for lowering interest rates that created the Tech Bubble. They released him once again in the lead up to the housing bubble, where he was the loudest advocate for inflation of the housing bubble.

From Krugman’s 2002 NYT editorial – “Alan Greenspan needs to create a housing bubble to replace the Nasdaq bubble.”

Then, with absolutely no humility or shame for his role in enabling the bankrupting of millions of hard working Americans during the housing collapse, he once again, pushed the idea that the Fed should lower interest rates to zero and print trillions of dollars.

Now here we are again, about to suffer the inevitable, predictable and monumentally tragic consequences of the Feds “mistakes”, that were egged on by Mr. Krugman. No doubt he will be released from his cage again and like the good parrot that he is, he will repeat his rehearsed mantra of “print money and lower interest rates – squawk”.

Ten years ago, the idea of taking interest rates negative would have been considered inconceivable, preposterous and economically destructive by nearly all investors. Welcome to the “brave new world”, where the impossible and insane become reality.

Regular people are now forced to spend their life savings and/or rely on Social Security or a pension. Social Security is a smaller Ponzi Scheme inside of a much larger one. Just as the U.S. economy is reliant on and addicted to an ever increasing mountain of debt, the Social Security Fund is reliant on younger workers putting money into the System. The biggest problem with this scam, is that as baby boomers retire in mass, there are not enough young people paying in, to cover what’s being paid out. As a larger percentage of baby boomers retire, this situation will get worse. Another huge problem with S.S. is that it is being used as a slush fund for all kinds of things that it was never intended to be used for. These two factors guarantee, at some point, the Fund will either be unable to make payments or have to get bailed out.

Most pensions, public and private are grossly underfunded. Most are invested heavily in fraudulent Wall St. derivatives and artificially, Fed inflated stocks. A cascading derivatives collapse has been triggered by $30 oil and it looks like another stock market collapse is here as well.

This debt collapse will not play out over night. It took 45 years to build it to the ridiculous size it is today and will take some time to unwind.

In 2000, the markets attempted to correct or deflate the bubble created by the Federal Reserves massive credit expansion, only to see them blow an even bigger one, in the form of the housing bubble that was egged on by academic “yes” men like Krugman, who have zero experience in the real world.

In 2008, the markets again attempted to correct, but the Fed, along with folks like Krugman, responded by blowing the largest economic bubble in the history of the world. The current economic downturn is the market attempting to correct once again. This self correcting market mechanism will be short circuited by the Fed, like the last two times, in the form of negative interest rates and ludicrous amounts of money printing. The planned end game/scenario will be the largest transfer of wealth in history. Like a vampire sucking the life blood out of its victims, the American people will be drained of their wealth by the parasitic elite class, via a massive devaluation of the dollar.