posted on Dec, 31 2010 @ 04:58 PM
Every time the money supply increases, it pushes prices up. Let's say you grow corn. If you produce 100,000 bushels a year at $2.12 per bushel, you
make $212,000 in gross sales in which you then deduct costs to determine your income. However, there is a limited amount of corn you produce. You
cannot just decide one year that you will produce 200,000 bushels with the same amount of land and labor put into it. So each bushel has a real value
as land is limited and your labor and time is limited. So if the government borrows one trillion dollars from the Federal Reserve and they then spend
100 billion on corn, there is now less corn that year and the usual purchasers, such as cereal factories, etc, now have to pay a higher amount to buy
the same amount of corn as they would have before since the supply has been decreased. So the price rises and we see inflation. Then as the private
banks expand that one trillion dollars to ten trillion dollars, the price of corn and other commodities will continue to rise(or one could say that
the value of the dollar has declined).
So if the money supply is expanded through debt creation, which results in inflation, then when you try to pay off debt, the money supply will in
return contract, which will result in deflation. So when any significant amount of debt is paid off that is more then being created at a given time,
this will cause there to be up to ten times less the amount of money that is paid off. So if the United States Government paid down all of it's debt
today, which is 9.3 trillion, this would cause the money supply to contract by upwards of 93 trillion dollars. That would mean a 64% decrease in the
money supply. So the price of everything would then need to decrease to 1/3rd their current value(payroll included). During that adjusting period,
very few things would be exchanged back and forth which would translate into many people losing their jobs and taking very large pay cuts and also not
being able to purchase the basic amenities as they are priced 64% too high. People would feel like they just don't have enough money. Companies
wouldn't have enough money to pay their employees and many jobs that are currently paid below 17$/hour would need to be adjusted below the minimum
I honestly thought everyone knew this. I really did.. Beck and the Judge are starting to tell it in a more compelling way.
I was under the impression someone other then Ron Paul was going to correct it. I guess I'm as gullible as everyone else waiting for someone to tell
me what to do. Or how to fix it.
Banks have always made money..Inflation,Deflation.they always make their margins.
Kinda like a Vegas bookie..Bet the over or under, who wins or who loses a game, bookie gets paid on both sides.
Federal Reserve is a private bank running the U.S. cash system.. Do they REALLY care if we're losing our position in the world as a soverign nation?
Why would they? They're Global baby.. They gotta make up for the bets in Nigeria where they took a hit for 5 years on one game..Same better won for
5 years.. Gotta get the money from Ireland or New Zealand, to cover the loss for a while.They'll make it up.I can only picture the guys at Bildenburg
having to cover their markers at their meetings... Kinda like the Game RISK.. Except real money and countries.
Federal Reserve is part of the big RISK Game. We know it..as Americans. Oh, the rest of the free world aint too happy about it either.
I really don't know.