Borrowed Time

Magic Money SystemWith Tax Season fast approaching, it’s brings into focus just how precarious the financial health of this great nation actually is. To think that there will be no repercussions or blow-back from the ‘People’s Debt’ ballooning up past 20 Trillion Dollars is pure folley, and fantasy. The financial ‘El-lites’ put the nation into a Fractional Reserve Magic Money System of creating money out of thin air back in 1913 with the creation of the private ‘Federal Reserve System’. Volumes have been written about this, and many great videos have been published about this topic.

Most people do not pay much attention to this subject, as we are all so powerless to change the USA’s Titanic course, everybody’s so consumed with their daily lives, problems, and survival. However, to ignore the situation, or shrugging it off in a ‘Que Sera, Sera (Whatever Will Be, Will Be)’ outlook is also full of folly at this point. Things are getting hyper-serious since the ‘Peoples Debt’ has crossed the 20+Trillion mark. This is going to be a ‘hard landing’, it can’t turn out any other way. The smartest financial minds work overtime to keep this plane in the air without crash landing, but as the recent article by Charles Hugh Smith titled “How Much Longer Can We Get Away With It?” documents, the die is cast. It’s way past the time for each of us to try to position ourselves for this journey through the looking glass, which will take us all in directions that we never thought possible when the plane finally falls out of the sky and makes it’s ‘Hard Landing’.

Here are some quotes from the article by Charles Hugh Smith;

National Debt“Alas, fakery isn’t actually a solution to fiscal/financial crisis.. This chart of “debt securities and loans”–i.e. total debt in the U.S. economy–is also a chart of the creation and distribution of new money, as the issuance of new debt is the mechanism in our financial system for creating (or “emitting” in economic jargon) new currency: when a bank issues a new home mortgage, for example, the loan amount is new currency created out of the magical air of fractional reserve banking. Central banks also create new currency at will, and emitting newly created money is how they’ve bought $21 trillion in assets such as bonds, mortgages and stocks since 2009. Is there an easier way to push asset valuations higher than creating “money” out of thin air and using it to buy assets, regardless of the price?”

“If there is an easier way, I haven’t heard of it. Which brings us to the question: how much longer can we get away with this travesty of a mockery of a sham? How much longer can we get away with creating “money” by issuing new debt/liabilities to grease the consumption of more goods and services and the purchases of epic bubble-valuation assets?”

“Crises tend to reduce tax collections and increase government/Imperial costs, and this creates a fiscal/financial crisis. The Romans didn’t have a fiat currency that a central bank could create out of thin air, so they did the next best thing which was to replace their mostly-silver coinage with new base-metal coinage that had been washed in silver. That is, they debased/devalued their money, replacing coinage with an intrinsic value of silver with coinage with little to no intrinsic value”

“They (Roman Empire) got away with this debasement/ devaluation for quite a few years, and so naturally they reckoned they could get away with it forever. But alas, debauching the currency is not a permanent solution to insolvency; it is a one-time trick that fools the market and populace for a time but soon enough people catch on and bad money drives out good money (Gresham’s law) as people hoarded the old silver coins and tried to trade the worthless new coins for anything but more worthless “money”

To Read The Entire Article By Charles Hugh Smith (CLICK HERE)

 

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