The Coming Pandemic of Debt Based Paper Money
Editor’s Note: This was emailed to me from a very good commercial mortgage lender friend of mine. I am not sure of who the original author is, so if you do know, please email me so I can give him credit and a link. This article is spot on and now we are seeing gold react during the traditional slow season when you see gold prices drop, they are instead approaching the $1,000.00/oz. USD mark.
It is short-sighted to think we can bailout all these bad actors, run trillion dollar deficits and think that it will not have serious issues coming down the road in the form of price inflation and possibly a collapse of the U.S. dollar. One thing I do think we will see is the end of debt-based fiat currencies issued by private central banks, it really makes no sense to borrow from yourself at interest just to issue your currency. Is the Greenback going to make a comeback?
Article (Author Unknown):
This time the deflationary depression will be accompanied by an extraordinary global currency crisis. Government attempts to reflate their deflating economies will instead give rise to additional massive economic distress.
Today’s unprecedented monetary creation will create an unmitigated global currency disaster that will destroy money as we know it.
To stimulate deflating economies, so much fiat money is being printed that money will eventually become worthless. Throughout history this is how all fiat currencies have ended, in the uncontrolled printing and circulation of increasing amounts of increasingly worthless paper.
The printing presses are now being run as never before in the US, the UK and Japan in the desperate hope that it will save them from the overwhelming gravitational pull of deflation, an economic black hole of immense inertia.
The borrowing, printing and circulating of excessive amounts of fiat money has been done before and does not work. Doing so is a recipe for disaster; albeit a time-honored recipe that has been tried in the past always with the same result.
It will be no different this time.
Quantitative Easing Into Economic Death
The term quantitative easing disguises the incredible absurdity of governments borrowing from themselves.
It is no coincidence that quantitative easing is now being adopted by the US and UK nor is it a good sign that it is being done. Quantitative easing is a sign that deflation has reached a level where governments cannot survive unless extreme measures are implemented.
We are now witness to otherwise bankrupt nations with contracting economies planning to re-spend themselves back into prosperity on borrowed money – money to be borrowed from themselves.
The US, the UK and Japan – the economic troika of the living dead – are all engaged in quantitative easing and are now in the last stages of capital destruction and economic collapse.
The End of the Line
Banks and governments – especially the US, the UK and Japan – have reached the end of the line; indeed, we have all reached the end of an era. The bankers’ game of debt-based capital masquerading as money in order to indebt and profit from the productivity of others is now in its final stage.
The bankers’ resultant debts are now so large, they can no longer be retired, serviced, sold, or even rolled over. That governments have announced they will guarantee all bank deposits and increasing amounts of public and private sector debt when they themselves are broke is a sign of the times – the end times.
The recent rebound in global stock markets indicates only that we have not yet hit the bottom. We will. Just wait and see