Controlling The Deflation

Since you are reading this you are most likely one who has been here before with a good idea of the economic problem - fake fiat Federal Reserve money. The kooks in Kongress are mostly economic idiots without a grasp of the dynamics of a deflation. I'm pretty savvy about such things and even I did not see the reason for this deflation happening at this time. I guess I didn't focus on the enormous debt floating around that banks would not be repaid. This would cause them to quit lending until the debts had been settled meaning either you repay them or go out of business and are no longer around to borrow money that won't be repaid. While this waiting period happens the supply of money steadily declines which is a deflation by definition. Remember, in the fractional reserves fiat system new money is mostly injected into the economy by bank lending and no lending means no new money. Hence, our deflation.

Hill Humpty-Dumptees hope to control perceptions of the polis while they figure out how to stop prices from dropping further. Most of these economic Capitol Hillbillies don't even realize the price drops ARE cause by the drop in the supply of money so they run around willy-nilly trying to prop up this business or that corporation. Doing this of course will not help banks quickly figure out who will repay their loans and who will go belly up. So they will wait even longer before even thinking about lending again and reinflating the economy with more Federal Reserve space bucks. So the deflation will be more controlled and pleasing to the perceptions of everyday people. But because of the way the fools on the hill will try to save to system of funny money we will have a much deeper deflation for a much longer period.

Of course all the "tools" are in place to just create as many space bucks as Obama wants to then spend anywhere he and the Democrats choose. The benefactors of those space bucks will find temporary solace in the bills these fake bills will pay. Some bills like my mortage are fixed and will not increase. However, other bills like food will skyrocket. Also, regulated industries like your local electric or phone companies will gouge you good of your fiat money - simply because they can. Your protectors in government have given them legal monopoly rights to provide these services to you. Pay the bill or lose service are your two choices.

However, there will be entirely too many people for Obama to just give money to and if doing such a thing would be a good thing wouldn't Cubans be wealthy in Castro's paradise? So what Americans will do is become self sufficient or they will die. But this disrupts the normal economics lifestyle which Americans have come to know. Anything in the hospitility industry or travel related businesses will be toast. In fact, anything not absolutely vital will be hit hard. The more fake money Obama pumps into the economy the more worthless it will become. In short, the entire pricing structure will be so distorted that the dollar will collapse and become worthless.

What does that mean? Take a good look at Iceland. It is happening to them as I type these words. They are in real trouble as they are not known as a food exporting powerhouse. They are getting hungry. But Americans are so lucky. We have made an enormous mistake following these foolish politicos bought and sold by the banksters. Yet all we have to do is wise up, rise up and get to work. Take care of your main needs and forget about buying anything not vital to your existence. I've said it before and I'll repeat it again. GROW FOOD!!! Most of America has wonderful soil, water and growing conditions and the more we grow the better we're going to eat. Doing this with your neighbors could even develop a new economy locally based to provide Americans with the basic needs. Think of an ongoing yard sale that included food grown right in the neighborhood. Things will even come down to barter because so little money will be available and what is available will be needed to pay fixed costs like our mortages. Burn local firewood before turning on the electric heat pump. Pull together with your family and neighbors to help one another.

Naturally, with these things occurring as a result of our failed monetary system, the only solution to our problem is to follow the U.S. Constitution and return to price-stable gold and silver based money. The bankers can't inflate or in other words create fake gold and silver that doesn't exist. These metals have actual value while paper money in reality, even a hundred dollar bill is worth less than a penny to create. Until this happens people will not only be crazy to accept a return to the old counterfeit scheme - they will be financially unable to do so. That's why the Romans and Ottomans no longer have an empire. So spread the word amigos. We're an agrarian nation again until such time as the criminals in government and finance are safely behind bars and we are operating under an honest monetary system once again.