(Some important highlights from this excellent video presentation about our world economic crisis.)
The entire world is facing a debt driven disaster the scale of which has never been seen before in human history. The situation is now so severe that we’re left with only two options: Default on our debt, or inflate it away.
You can already hear people blaming the free markets and even money itself for our problems and to me this is just tragic. Because we don’t have free markets anymore and we certainly don’t use real money. This is the real reason for our problems. Our money itself has been corrupted.
It’s not just an issue of economics, this affects our freedom.
When this “crisis” really hits in the near future, people are going to be screaming for their governments to do something about it when it was the governments who caused the problems in the first place…….
(At 19:20 this documentary, it really gets interesting and compares what happened to East & West Berlin during the Cold War…basically a comparison between “Capitalism & Collectivism/Communism” and how that compares today in the U.S. At 20:51…..he states…..)
Now when we go toward collectivism, they want to eliminate this great disparity between the poorest and the richest individuals, but what happens just like what happened in East Berlin, is that they don’t raise the standard of living for the poor to a higher standard, they drag the whole economy down so that everybody ends up living in poverty….except for the people who are in running the government.
Collectivism is a danger because it’s proven time and time again that it doesn’t work. The evidence is in. If you look at history it’s clear that maximum prosperity can only be achieved through individual freedom, free markets and sound money.
Right now they are hyper-inflating the base money around the world with paper money. We’re going into a deflation of credit money – that voodoo hocus-pocus currency based on no hard currency (based on gold or silver) with the banks just typing into the computer higher and higher numbers with nothing to back it up and that’s starting to collapse the world economy (on purpose to create “The New World Order”).
One of the great things I’ve notice here at this “Money Museum” in Berlin, is that they keep on proving the point that fiat currencies that come off of a printing press eventually fall to zero, that they always reach worthlessness at some point in history.
The ideal goal of all monetary systems was to ensure that money is trustworthy and kept in short supply. Metal-based currencies restrict the money supply because metal deposits are naturally limited.
One of the displays at “Money Museum” in Berlin states, “However, during the industrial revolution in the 19th century with the rapidly growing economy needed a means of payment which could adapt flexibly to this growth (creating the Federal Reserve/Central Bank in 1913).
BALONEY! You can have a fixed currency supply and when you have economic growth it means that the currency gains in purchasing power.
It goes on to say, “In the 20th century uncovered currencies, meaning “un-backed” currencies have been the norm. In principle, the money stock could grow unchecked. This is why Central Banks must ensure that the money stock is in line with economic growth. What a bunch of B.S!
‘Monetarists’ believe that we should have a Federal Reserve (Central Bank) and it should expand and contract the currency supply to achieve stable prices.
One of the problems with ‘Monetarists’ or ‘Keynesians’ is that they think you should expand and contract money….but they never contract it!
They believe that you’re suppose to spend when the economy is bad, that the government’s suppose to spend and stimulate and then withdraw currency from circulation to keep us from going into a bubble caused by the expansion of credit and the spending that they did during the bad portion in the economy. So they take this rubber-band and they stretch it and it’s suppose to come back. But they never do that, they just keep on stretching it by spending more money into infinity!
Where we are right now in the world is that that rubber band is about to snap with every currency on the planet. So the outcome will be from instability to deflation to inflation to hyperinflation where the “House of Cards” comes tumbling down.
This game of inflation and deflation has never worked. Right now we’re on the precipice of the whole system collapsing and just like a game, our monetary system will start over and reset. As to what will come out of this impending worldwide financial collapse is the big question.
I mentioned at the very beginning that the invention of money allowed humans to prosper and rise out of the Stone Age. But money is only part of the equation. What use is money if you don’t have freedom?
So what’s going to happen? Will we default or inflate our way out of the mess we’re in? I feel that we’re heading for a series of events involving a short term deflation, followed by a big inflation or hyperinflation causing a worldwide economic crash.
Stunning Chart: Today’s Stock Market is Eerily Reminiscent of 1929