Recap Of

Hypertiger · December 20, 2002

Deflation and Inflation of FIAT currency has been known about for 100?s of years?

Examples from a previous posts.

Many years ago when gold coin was the currency Banks did not exist... The only group that had the necessary facilities to store wealth in the form of gold coins were the GOLDSMITHS. People would store (Deposit) their gold and the goldsmith would give them a receipt. The people found it easier to carry receipts to market then gold after awhile and the receipts became as ?good as gold?. The Goldsmiths noticed that at any given time 90% of the gold in their vaults just collected dust, so the goldsmiths started loaning gold in the form of receipts on top of just making phony receipts. The gold market to this very day is run like this? as long as people will take paper instead of GOLD you will never run out of GOLD and paper is almost endless. One slight problem was found with this system DEBT INFLATION. As Debt inflation grows the ?receipts? lose buying power 2 ways a) the compound interest charged on the ?loans? destroys the value of the receipts B ) The counterfeit receipts and loans increase the supply of buying power which causes prices to rise which adds to or compounds the destruction of buying power. And the biggest problem with DEBT inflation is that the bigger the DEBT grows the less GOLD there is to back up the DEBT so eventually the system will grow continually weaker until there is no backing any more for the receipts in circulation.

At the start of Debt inflation 1,000,000 receipts are in circulation with 10% backing by gold, so as long as only 100,000 receipts are exchanged for GOLD then there is no problem. But if DEBT INFLATION reaches MAXOUT at 10,000,000 then only 10,000 receipts are needed to suck up all the gold?

This ?trick? is 1000?s of years old.

Or it?s just Anti-Banking communist propaganda? But the trick is still effective today or is it? For a bright future for the United States of America the ?trick? must be extended forever? But this ain?t a computer program this is the real world with real people and unless there is a machine that can produce GOLD out of thin air, the ?manipulation? is going to crumble and gold will rise so fast and far that it will be ridiculous? Is that a problem? Not for people with gold in their hand, big problem for holders of IOU?s and empty vaults.

The banking system would collapse if they lose control?Plain and simple. Doesn?t look good now does it?

The bank hath benefit of interest on all moneys which it creates out of nothing. -William Paterson, founder of the Bank of England, c1694.

Whoever controls the volume of money in any country is absolute master of all industry and commerce. -President James Garfield.

If the American people ever allow private banks to control the issue of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children will wake up homeless on the continent their fathers conquered. -Thomas Jefferson

Banking was conceived in iniquity and born in sin. Bankers own the earth; take it away from them but leave them with the power to create credit; and, with a flick of a pen, they will create enough money to buy it back again. Take this power away from them and all great fortunes like mine will disappear, and they ought to disappear, for then this world would be a happier and better world to live in. But if you want to be slaves of bankers and pay the cost of your own slavery, then let the bankers control money and control credit. -Sir Josiah Stamp, Director, Bank of England, c1940.

Anyone who believes exponential growth can go on forever in a finite world is either a madman or an economist.?Kenneth Boulding, economist.

Deflation is caused by the compound interest paid on DEBT that is created out of nothing.

When you ?get a loan? all the bank does is create the money out of thin air but the compound interest is not created. Where does that come from?

Mortgages? Lets say you borrow 100,000 for 20 years well sure enough 100,000 dollars is created but the 20 years of compound interest is not

Lets say you sold the house to the person above and invested the 100,000 dollars in the stockmarket. You buy 100,000 shares for 1 dollar apiece and go on vacation. You come back from vacation to find out that due to accounting irregularities the company?s stock has crashed to ,10 cents apiece 90,000 dollars is gone now where is the person going to get the 100,000 dollars plus interest to pay the loan only 10,000 dollars is left tied up in stock waiting for the ?recovery in the second quarter?? Hmmmmmm?

Where does ?money? come from? Answer: All money in existence is DEBT with compound interest slowly destroying its worth.

Eg. 1 dollar created for 1 year at 1.25% is worth .9875 cents after one year?

Well how do you pay the compound interest then? You have to borrow it. What the?

Eg. 1 dollar created for 1 year at 1.25% is worth .9875 cents after one year but you want a dollar so you borrow another one at 1.25% and after a year you have borrowed 2 dollars but those 2 dollars are worth $1.975 as you see since the compound interest is not created along with the DEBT, it can never be paid. EVER.

But don?t the banks lend other peoples money? No all the money you deposit in the bank are the fractional reserves used as a basis for the creation of money out of thin air.

Lets say that 10 people deposit their pay checks in the bank and the total is 10,000 dollars but every 2 weeks in between paydays on average only $9,000 is ever taken out. That leaves $1,000 dollars in the bank at any given time. The banks use that as a down payment when they create $10,000 plus compound interest to lend out. As long as the bank does not run out of the ability to give cash on demand then the whole thing works very good Debt cards and credit cards are a banks best friend because it is all just an accounting trick as long as the cash supply does not run out nobody ever knows that every bank in the World is basically insolvent from creation. Bank runs must be prevented at all costs? If ?cash? gets short just pop by your nearest Federal reserve branch and you can pick up a dollar for 1 percent and ?sell? it for 5 percent or just borrow cash from your main branch or an other bank if you want. Or if the person is ?nobody special? just tell them there is not enough money in the bank and if they protest take them in back and show them the small print, direct them to another bank or just call the police to have them removed. Cool eh.

Well what does that have to do with the kind of deflation ?we? are in now?

Well there is a problem with the system and that is the compound interest eventually destroys the value of money to the point that you have to borrow more and more to get the same kick lets say for simplicity?s sake it costs 10 dollars a year to exist. Well we all ready know that after a year we only will have $9.875 Dollars to pay the cost of existence so we will have to borrow $1.25 to cover the cost of deflation. You see the interest keeps compounding forever and the cost of existence or ?lifestyle? Inflates. Here?s inescapable problem the people at the bottom end of the economic food chain can?t borrow or be part of the DEBT creation process forever. Lets take a look at how that works?

Lets say your ?job? or function pays you 20 dollars a year. And your lifestyle costs 10 dollars a year. That leaves you with 10 dollars.

Next year after that you feel secure and decide since you got a raise of 1 dollar you up the ante to 11 dollars. And you have 20 dollars ?saved? right? Not so fast?

The inflation rate of the cost of existence ate that dollar up and you needed to dip into your savings for another .50 cents because the cost of your lifestyle has somehow become more expensive. So now your yearly cost of existence costs 11.5 and you have $19.70 (2% interest for your savings account) saved

It's just rough simplistic estimates...

Your savings have gone down roughly 1.5% where did it all go?

Compound interest to the banks and I did?nt even talk about price spikes from external forces.

This ?inflation? of the cost of existence continues for years until the ability of the people in the system to service all the compound interest created becomes impossible. What?s next? Bankruptcy but not the banks yet? the people that can?t afford the rising cost of compound interest. So lets say buddy who makes 11 dollars a year is working for a big company and is a hard worker but the CEO has noticed that the cost of existence has gone up has and he is short 11 dollars, borrow? Or Declare bankruptcy? No he decides that he has a good caddie and couldn?t live with out him and decides that layoff notices should be sent out. In fact all the CEO?s start doing the same thing. Then sales start dropping so prices are slashed but they don?t pick up but the bill still need to be paid. So now it?s wholesale slaughter of the workforce and cut prices to below cost on top off all this the stockmarket is going down the crapper. The bills still come in and can?t be paid.

CEO decides it?s been a slice tells everyone the recovery is around the corner fudges the numbers and starts selling stock, 6 months later, Bankruptcy and the records room catches fire. CEO is living it up on a Caribbean island and Buddy?s Unemployment benefits run out he loses his house (due to a 10% deflation of home prices which wipe out the equity) and his wife leaves him because she is sick and tired of listening to the ?But honey, it?s really the federal reserve?s fault? story over and over again.

The above process continues millions of times over until enough people and corporations and ?bad? banks declare bankruptcy and the bottom is reached. The FEDERAL RESERVE SYSTEM bails out the ?good banks? and all the losers are bought lock stock and barrel for pennies on the dollar by The people that know how this wonderful system works? And after everyone has licked their wounds and enough time passes the next generation shows up to do it over again and again and again happily ever after?

This is how ?modern? Fractional Reserve banking has worked for 100?s of years.

Phase/Stage 1

Everyone?s favorite drug INFLATION of Debt?

Once the maximum potential for debt inflation is reached phase/stage 2 begins. (this is where we/you are? standing at the edge of ?the good old days?)

Phase/stage 2

DEFLATION of debt, How or why?

Compound interest is the price to sustain inflation. As long as you can pay the price, inflation will continue and your hopes and dreams will usually come true. Once you can not afford the payment your hopes and dreams will not come true. Simple

The only way to pay compound interest is to borrow money/create debt. Once borrowing slows or stops compound interest can not be paid and debt deflation is the result.

Aren?t we just in a mild recession or ?soft spot??

No, In the past there was ?slack? in the economic system what is slack? ?SAVINGS?. with the introduction of computers the economists have figured how much everyone has, and marketing specialists have figured out how to get it. The charts below are some evidence that the slack is gone?

We are just in the beginning stages of deflation.

Phase/stage 3

?Bank?ruptcy

Complete collapse of all interconnected banks in the system, since the US dollar is the world reserve currency the world banking system will collapse. plain and simple.

Recap of the ?LIFECYCLE? phases/stages of fractional reserve banking.

Phase/stage 1 = debt INFLATION

Phase/stage 2 = debt DEFLATION

Phase/stage 3 = ?Bank?ruptcy

Simple as 1,2,3

Why do I harp/rant about this? Answser:

BECAUSE TRILLIONS OF DOLLARS HAVE BEEN INVESTED INTO THE SOCIAL ENGINEERING/DESTRUCTION OF YOUR ?MIND? SO YOU NEVER FIGURE OUT THE 1,2,3 PROGRAM, AND DEMAND IT TO BE CHANGED OR RESIST IT. This has been going on for 100?s of years now.

Jim S. and Doug N. are enthralled by it, they are in it?s spell.

It has taken me years (7) of study in libraries, used book stores and on the Internet.

The ?powers that be?, YOUR MASTERS know full well how the system works and once the milking is over they will finish you all, they will hunt you down like animals in the end. Then after everyone is ?raped? and ?pillaged? and the bodies are bulldozed into mass graves Inflation will start all over again.

The last time there was any oversight of the banking system was 1976 so the info has changed a bit but here is what is known about the Owners of the FED.

Owners of the FEDERAL RESERVE

Secrets of the FEDERAL RESERVE.

Lord of the Central Banks

Many Central Banks... but one bank to control them all...

The Bank of England is at the top but France plays a part also...

Trade gap?

England deficit

Any ?Real? Questions?