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Thread: Are You Prepared For The End Of Fake Money?

  1. #1

    Are You Prepared For The End Of Fake Money?

    https://www.zerohedge.com/news/2018-...end-fake-money

    Authored by EconomicPrism's MN Gordon, annotated by Acting-Man's Pater Tenebrarum,

    What Is Money?

    Today we begin with a fundamental question: What is money? This, no doubt, is an important question. And we ask it with clear intent and purpose. Namely, we want to better understand how it’s possible for America to rack up such a massive trade deficit with China.



    China-US imports and exports of goods. It has to be stressed that the most often cited figure is the trade deficit in goods, which is the “scariest” figure. The US surplus in services with China has grown rapidly in recent years. It was $33 billion in 2015, doubling from $16.5 billion just four years earlier. By 2017 it had grown to $38.5 billion. The idea that a trade deficit is somehow “bad” is highly dubious. “Countries” do not trade with each other anyway – individuals and companies do, and they obviously do so because they deem it advantageous for both sides. Moreover, these aggregate statistics obscure more than they reveal. The global supply chain is extremely complex – a single $3 t-shirt “Made in China” will contribute to the incomes of people in some 15 to 20 countries before a consumer in the US plucks it off a shelf at Wal-Mart. If we were to talk incessantly about the US capital account surplus – which offsets the trade deficit – would anyone complain? [PT]

    America’s trade deficit with China, in 2017 alone, was $375 billion. That’s a gap of over $31 billion a month – or $1 billion a day. We believe having a better grasp on what money is will bring clarity to the nasty trade deficit that’s motivating today’s burgeoning trade war.

    With respect to our initial inquiry we turn to Victorian economist William Stanley Jevons for edification. In his 1875 work, Money and the Mechanism of Exchange, Jevons stated that money has four functions. It’s a medium of exchange, a common measure of value, a standard of value, and a store of value.

    Many deficiencies with today’s renditions of money, including the dollar, appear when applying these functions to the present system of floating exchange rates. With the exception of functioning as a medium of exchange, the dollar, like all of today’s debt based fiat currencies, comes up short in its function as a common measure of value, a standard of value, and a store of value.

    Hence, today’s money is not real money. Rather, it’s fake money. What’s more, this fake money has ridiculous implications on how people earn, save, invest, and pay their way in the world we live in. Practically all aspects of everything have been disfigured by it.



    An image of the “disfiguring” – US broad money supply TMS-2 since 1986. In early 2008 it stood at USD 5.3 trillion – a decade later it has grown by more than 150%. Think about this for a moment: just the additional amount of money created in the US economy in the past decade was 1.5 times greater than the amount of money created in all of US history before 2008. It is impossible for the effects of this to be “neutral” in any shape or form. [PT]

    Follow the Fake Money

    The failings of today’s fake money generally stem from the unsatisfactory reality that it is birthed from debt. Money is borrowed into existence seemingly without limits.

    On top of that, floating exchange rates, where the relationships between currencies are ever changing, and money is continually eroded by monetary inflation, make it wanting as a common measure of value, a standard of value, and a store of value.

    Take the dollar, for instance. Over the last 100-years, it has lost over 95-percent of its value. Yet, even with this poor performance, the dollar has one of the better track records going. In fact, many currencies that were around just a short century ago have vanished from the face of the earth. They have been debased to their actual value – that of fire kindling or toilet paper.



    ...
    Full article at link.

    ---

    Zippy ought to be along shortly to tell us Fiat Currency is Money because Bernanke once said to Ron Paul that Gold is NOT Money.

    1776 > 1984

    The FAILURE of the United States Government to operate and maintain an
    Honest Money System , which frees the ordinary man from the clutches of the money manipulators, is the single largest contributing factor to the World's current Economic Crisis.

    The Elimination of Privacy is the Architecture of Genocide

    Belief, Money, and Violence are the three ways all people are controlled

    Quote Originally Posted by Zippyjuan View Post
    Our central bank is not privately owned.



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  3. #2
    Take the dollar, for instance. Over the last 100-years, it has lost over 95-percent of its value. Yet, even with this poor performance, the dollar has one of the better track records going. In fact, many currencies that were around just a short century ago have vanished from the face of the earth. They have been debased to their actual value – that of fire kindling or toilet paper.

    Just to point out (yet again) that most of that chart was during periods we WERE using real money (under various gold and metal standards) until 1972.

  4. #3
    Quote Originally Posted by Zippyjuan View Post
    Just to point out (yet again) that most of that chart was during periods we WERE using real money (under various gold and metal standards) until 1972.

    Is that why FDR made it illegal for US Citizens in 1934?
    Pfizer Macht Frei!

    Openly Straight Man, Danke, Awarded Top Rated Influencer. Community Standards Enforcer.


    Quiz: Test Your "Income" Tax IQ!

    Short Income Tax Video

    The Income Tax Is An Excise, And Excise Taxes Are Privilege Taxes

    The Federalist Papers, No. 15:

    Except as to the rule of appointment, the United States have an indefinite discretion to make requisitions for men and money; but they have no authority to raise either by regulations extending to the individual citizens of America.

  5. #4
    Goes to show the gold standard wasn't the solution.

  6. #5
    Quote Originally Posted by Danke View Post
    Is that why FDR made it illegal for US Citizens in 1934?
    He did it because there was not enough gold for the economy to use for money.

  7. #6
    So we were using real money, just not enough of it around...ok. makes perfect sense.
    Pfizer Macht Frei!

    Openly Straight Man, Danke, Awarded Top Rated Influencer. Community Standards Enforcer.


    Quiz: Test Your "Income" Tax IQ!

    Short Income Tax Video

    The Income Tax Is An Excise, And Excise Taxes Are Privilege Taxes

    The Federalist Papers, No. 15:

    Except as to the rule of appointment, the United States have an indefinite discretion to make requisitions for men and money; but they have no authority to raise either by regulations extending to the individual citizens of America.

  8. #7
    Quote Originally Posted by Zippyjuan View Post
    He did it because there was not enough gold for the economy to use for money.
    Maybe they shouldnt have been printing up currency that was not backed by gold?

    Either way, you derailed the thread, so -REP.

    ---

    Currency is about to change, and as usual, the people at the bottom will get $#@!ed.
    1776 > 1984

    The FAILURE of the United States Government to operate and maintain an
    Honest Money System , which frees the ordinary man from the clutches of the money manipulators, is the single largest contributing factor to the World's current Economic Crisis.

    The Elimination of Privacy is the Architecture of Genocide

    Belief, Money, and Violence are the three ways all people are controlled

    Quote Originally Posted by Zippyjuan View Post
    Our central bank is not privately owned.

  9. #8
    Quote Originally Posted by Zippyjuan View Post
    ...(under various gold and metal standards) until 1972.
    The key point is right there. Who sets the standards? Who dictated the price of gold, and therefore the value of the currency?
    Its the same game - you cant call that real money.

    The same can be said by governments trying to affect the supply of gold by stockpiling and removing from circulation.

    Gulag Chief:
    "Article 58-1a, twenty five years... What did you get it for?"
    Gulag Prisoner: "For nothing at all."
    Gulag Chief: "You're lying... The sentence for nothing at all is 10 years"





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  11. #9
    Quote Originally Posted by DamianTV View Post
    Maybe they shouldnt have been printing up currency that was not backed by gold?

    Either way, you derailed the thread, so -REP.

    ---

    Currency is about to change, and as usual, the people at the bottom will get $#@!ed.
    What is currency about to change to? When does this happen?
    Last edited by Zippyjuan; 07-22-2018 at 08:55 PM.



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