Friday, October 03, 2008

Pimps Pumping Money

One thing I've always had a knack for is being able to understand complex systems that I can explain to the average guy in the street in a manner he can understand.

For example, normally our illegal Federal Reserve pumps most money into the economy using the lending institutions. The Federal Reserve literally creates money out of thin air then lends it out into the economy thereby inserting money into the economy. When economic gurus of government say the economy grew what they mean is the amount of dollars grew in the economy. As long as there is healthy economic activity borrowing fiat fed money keeps the supply of cash flowing.

However, when the Federal Reserve private banksters hyper inflate the dollar, then shut off credit availability it stops the growth of dollars in the economy. They do this periodically to deflate prices a bit and squeeze the bad investments out of the economy. But now they are stuck. The dollar pump is not functioning because people can't or won't borrow. The only thing that will get dollars pumping again under this free range slave money scheme is for prices to drop and drop drastically. Only then will the shoppers return and the employers hire followed by the savers saving.

But wouldn't it be better, now that the Federal Reserve private banksters have seized up our economy again with their unconstitutional fiat money, to shut them down and return to real money based on silver and gold? Only then will Americans own their money rather than renting it from private international bankers? The best thing about this "bill" they're shoving down our throat is, it's not going to have any effect whatsoever on the decline in prices which must occur. The government is trying to prevent this price correction that would reflect the new lower cost ratios for everything. But the economic law reality is if the supply of money shrinks, then the remaining money increases in value. The government wants you to spend it like a drunken sailor paying the higher inflated prices like when there were oodles of dollars in the country a few years ago. Most of them now are overseas hyper inflating prices there especially in the middle east.

People, as a rule, are not too savvy about complex economic economic questions. But on basic questions like, "Should I buy this or that now when prices are declining?" Or if I can wait a year or two, pay much less for everything even food as people home farm again? That's the dilemma the government faces. They can keep just printing up more and more funny money in a desperate failing attempt to keep the economy from crashing. But the more they whip up pile of money by the trillions and spend it to prime the money pump, the greater the crash.

Grow food.

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