In this way, money is created and destroyed through the issue and return of credit.
As things stand, hundreds of trillions of dollars have been created in this way. At one percent interest, trillions of dollars are due in interest payments every year.
The interest due is so astronomical that it has become a real strain on the economy. No more credit can be issued because no-one can afford to pay it back.
There are of course exceptions to this. Some people don't have any loans. However, these are few and far between. Most people are in debt.
Furthermore, all states have debt. With our present monetary system, there can be no money without debt, so states are in debt, partly to ensure that there is money circulating in the economy.
To finance the interest payment on their debt, states tax their people. Everybody is taxed for the privilege of having money circulating in the economy.
Some states have issued debt that run for as much as hundred years. The agents of the state have in other words decided to tax at least three future generations in order to keep the system going.
The state agents act as the gate keepers for the plantation in which every person is a slave to the banks. The banks are true masters, the privileged issuers of debt. Every man child and woman is expected to pay their due, and future generations, yet unborn have been offered as collateral.
However, the system is unsustainable. There is a limit to how much debt can be issued, and when that limit is reached, there is only interest payments. The party is over and the debt must be returned.
At this point, people will realize what sort of con game they have been lured into, and they will want to get out of it. They will start paying down on their loans, and they will find ways to avoid the taxes that everyone will know to be nothing but tribute to our banking masters.
The idea that the state is there to take care of us will die, and a general awakening will occur. People will see the tax farm for what it is, a system of free range slavery.
To get out of this mess, there are only two ways forward. We must either pay down the debt and interest, or we must let the debt evaporate through default or inflation.
As long as there is no general revolt, the next hundred years will be a century in which debt is gradually reduced. Money will be returned to the banks where it will be destroyed. The money supply will be reduced. Money will become scarce, and prices for everything will drop. We will get hundred years of deflation. Those with money in the bank and no debt will be the big winners.
However, if there is default, money will become worthless. The debt slaves will in this way be let off the hook and those with money in the bank will be the big losers.
Only as long as the current system is in place and operating as intended will money in the bank be a good position. If there is default through inflation or otherwise, the prudent saver should own assets.
However, all assets will loose out relative to cash in the event that there is no default.
What then is the correct position for the saver?
The answer is cash and gold.
Cash will do well as long as the system holds, and gold will do well if the system breaks. Furthermore, gold is a saver's asset. Very few people hold both debt and gold. This means that if the debtors of the world come under pressure, gold is not going to go down in price.
Even if the system holds, gold will do relatively well. If the system defaults, gold will do fantastic.
The prudent saver should therefore have both cash and gold: Gold for the long haul and cash for the shorter term.
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| The slave master's fort |
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