As we never tire of repeating; ‘fractional reserve banking’ anchored on fiat currency is the worst non-violent crime of the millennium. Understandably, this conclusion of ours might not be acceptable within the circle of modern bankers. After all, bankers make their living by killing others, literally! Remember the old adage: ‘all wars are bankers’ wars’! In fact, it is the unbridled greed of the global banking/financial cabal that is giving impetus to the emerging system of crypto-currencies. Admittedly, the current state of crypto-currencies leaves a lot to be desired. Even though cryptos themselves are not based on something tangible, what absolves their ‘fiat-ness’ is the fact that their volume is fixed and determined a priori, i.e., they cannot be inflated at whim, by anyone! For example there are only 21 million ‘Bitcoins’ available in the world and that is for eternity, so to speak!
Cryptos appeal to the youth and the vanguards. As it stands, the block-chain technology that underlies cryptos is unwieldy and energy intensive, hence need to be significantly transformed before crypto-currencies and ‘smart contracts’ can be used broadly. At the same time, the blatant abuse of ‘fractional reserve banking’ by all and sundry, is bound to implode, thereby taking down the whole global financial system with it! Creating phony money to sustain the unsustainable is not only crazy, but is also a criminal act of massive proportion. When the working stiff has to sell his/her labor for a continuously devaluing currency, while the parasitic cronies of the system do nothing to acquire immense wealth, societal harmony becomes only a figment of our imagination. The continuous devaluation of a currency is the direct result of printing money out of thin air. This phony money is given freely to cronies, while it indebts the sheeple (human mass) to serfdom till thy kingdom comes! It is this phony money that is currently sustaining the crony capitalism. Something has to yield! See Bloom’s article on page 38.
Increased economic polarization is, first and foremost, the outcome of fiat based fractional reserve banking; a criminal activity pure and simple! All other excuses/reasons of polarization pale in comparison. The damages phony money is causing, both to human societies and the planet’s ecosystem, is incalculable. Banksters all over the world make sure the sheeple remains ignorant about transnational finance capital’s various criminal engagements. From the universities to state bureaucracies, from market operators to non-profit sectors, all worship the teaching and deranged ideology of modern finance, which is based on phony money. Fortunately, things have started to stir. States that are more concerned about their sheeple are quietly preparing for the inevitable implosion. Hoarding gold and other precious metals is one way of preparing for the impending calamity. To this end, the central banks of China, Russia and many others are accumulating the ‘old relic’, which still remains one of the safest commodities for storing value. See the articles next column and on page 34.
Many a sheeple cannot un-fathom the ongoing panic that is taking place in the opaque world of global financial management. The US central bank (The FED) has started to flood the global banking system, once again, with liquidity (fancy name for more paper printing). It is trying to thwart off the emerging systemic chaos in the global banking world. For a start, the ‘repo’ market is showing signs of chronic sickness. ‘Repo stands for “repurchase agreement.” It’s when a borrower sells short-term government securities overnight in exchange for cash, agreeing to repurchase the securities the next day – and return the cash.’ In other words, banks seem unwilling to lend to each other. When the going gets tough, trust between banksters becomes the first casualty. The solution proposed by the central bankers; another round of QE or Quantitative Easing! This time behind closed doors. See Bonner’s article next column. The project of awarding free and easy money to the system’s cronies will not cease until hyperinflation makes a stop to the whole nonsense. Our market fundamentalists please note; it is this phony money that is taking custody of global productive assets from the gullible, via schemes like privatization, before time runs out on it!
One thing is clear; there is no way of sustaining a fraudulent financial system without causing humongous havoc on planetary sheeple. Here is what the old advocate of honest money had to say, decades ago. ‘There is no means of avoiding the final collapse of a boom brought about by credit expansion.’ Ludwig von Mises of the Austrian school of thought. A recent commentary by one of the prominent financial analysts reverberates the farcical nature of the global financial system, which we have been hammering ad nauseam. “The hatred of the rich is, however, somewhat understandable. Why? Because so many of them became incredibly wealthy by becoming cronies and gaming the political system. Most of their money was gained through theft, not production.” Doug Casey. Good Day!