X marks the spot

BullionVault

01 July, 2018

The basics - part two - Government

Government allows banks to create bank credit. This permission allows vast wealth to be gouged from us the people. Simply due to the fact that bank credit costs nothing to create. The people then pay interest and fees to use this bank credit. Hence our wealth flows to the banks.

The government is allowed by the banking system to 'borrow' bank credits but is never expected to repay any of the loans, ever. Governments do pay interest, or rather the people are taxed to service this 'debt', forever.

The government's use this facility to spend more than they take in taxes. Remembering now that principal is never repaid, who ends up holding this 'debt'? Yet again the 'loser' is us the people. Our pension providers are forced by our governments to put this unrepayable 'debt' into our pension accounts.

You getting the picture yet?

Basically banks create bank credit for free and use this asymmetry to create a flow of wealth from us, the people.

Government's, who allow this scam, spend far more wealth than they take and force our finance providers to put this bad 'debt' into our pensions.

So, dear reader, a great deal of our collective pension is bad debt.
The stuff we call money is just free to create bank credit.

The scam is beautiful. The banks skim from us on a daily basis. Our governments skim that which we believe we have saved for our retirement.

The beauty of the scam is that almost everyone is unaware of it. Us, the people, don't understand it. The people who work in government don't understand it. The people who work in finance don't understand it. Almost all people working as financial advisers and economists do not understand the scam. Accountants, almost all of them, truly believe that bank credit is money.

Are you critically thinking about your core beliefs?

It won't end well. This 'bank credit is money' fairy tale has a very sad ending. Two sad endings are possible.

1) bank credit creation collapses. 'loans' are increasingly difficult to both get and repay. Defaults soar. The number of bank credits in your pension becomes a very much smaller number. Interest rates spike up, violently, because of the defaults and each bump up in interest rates creates even more defaults. Oops.

2) Most defaults are bailed out, standards of living continue to drop but faster. Belief in the 'bank credit is money' fairy tale ends. Also known, incorrectly, as hyperinflation.

To be honest, I am not bothered which of the two 'sad' endings we get. Probably both, a least for a while. I am a critically thinking mindful being. I suggest you become one too, soon. I have written three very short books to help you become that which you were born to be.

Part three, where I write about how you can reduce the amount of wealth that is skimmed from you, won't be getting written anytime soon. Sowing seeds on barren ground is pointless. Read and understand my three books and you will become fertile ground with the ability to plant your own seeds. Then part three simply becomes my way, your way will be far better for you and yours.

Peace out people

Remember this, you do not understand the world and never will. Once you understand me, you will the ability understand yourself. At that moment, you will not simply understand the world, you will be the world. As am I.