Fiat Money is a Con Job

From the New York Post this morning:

"Democrats are united in the belief that laws of economics no longer exist. That you can spend trillions upon trillions — anything you want, really — with no downside.

The laws of economics respectfully disagree.

Inflation is up 5.4 percent year-over-year, the largest increase in 13 years. Partly, that’s the bounce-back from the pandemic, but it’s also because of the massive spending bills pushed through by both the Trump and Biden administrations.

Some stimulus was clearly necessary, but now that the economy is heating up again, the Democrats want to spend even more — $6 trillion."

But every bit of that government money will be pissed away on absolutely nothing but graft, corruption, kick-backs, support for unions and union workers, etc. If the government created a program to distribute safety pins, it would cost at least a $1BILLION, now and into the forseeable future, to create an entirely new bureaucracy to maintain safety pin distribution!! They'll call it "investment" or "infrastructure spending" but it's guaranteed that there will be no productive assets after all the pissing.  It will all be wasted. 

There is no concern about the debt burden that never goes away. With nothing spent on anything with an economic return, like a private sector investment, our future is grim. Yes, the government can cancel the debt or default, but that debt is someone else's asset.  The whole scheme will fall apart. We be broke.

I wrote a post called Extremes in Unsound Money and Finance Will (Eventually) Lead to Catastrophe back in Feb 2018.  I highly recommend that you read it.  It has a section on how sound money actually works.  Not that many people are alive that remember and/or understands sound money, so we're doomed to failure at some point--with huge suffering for the country.

The idea that the "government" can actually produce or create anything at this point is laughable.  Infrastructure??? What a fucking joke. The "government," with total dipshits at the helm, can't do shit. We found that out from the $700 B bailout passed in 2008 or thereabouts.  Contained within the allocated money was some 3% or about $24 B for "infrastructure" and "shovel ready" work.  Years later that money wasn't even spent and Obama joked "I guess there weren't shovel-ready jobs afterall."   It's a sick joke and shows the TOTAL INCOMPETENCE OF THE GOVERNMENT.  Nobody knows what they are doing. There is no oversight or accountability. It's all just one useless "blob" now.  They are pissing away money that they don't have.

Sadly, the Federal Reserve is now completely captured by the "government." and they will create reserves like crazy to fund the government (buy their bonds) and do as they're told.  It's really the final looting of America.   There's no reversing this.

Everyone's savings HAVE ALREADY BEEN devalued in a very devious way  -- you just haven't figured it out yet. ANY and ALL of the "printed" money (reserve creation or "high powered money"creation) is an immediate inflation of the money supply ---- reducing the future value of YOUR MONEY.   

 

Once money is created it's been proven that it can never be reversed or cancelled.  Therefore inflation is stored for the future.  They have already looted your savings.  You just can't see it yet.  The Federal Reserve tried to reduce it's balance sheet slightly for about 6 months in 2018 and the markets cracked-up.  Then it was back to MASSIVE new "reserve creation" or money "printing" galore. It can NEVER END.

 

Inflation is starting to pick up dramatically now. The inflation numbers this morning are eye-popping and they are likely UNDERSTATED.

Once people get wise to this, inflation will really ramp up. It's starting to happen. That's why people are buying housing with 3% loan money.  They are being given 3% money, some 90% of those loans from the FNMA or FHA (government) with housing gaining more than 10% per year.  What a great deal!! 

When the Federal Reserve creates bank reserves ("prints"), they buy government bonds from big banks: the favored TBTF banks, and pays the banks with newly created money. This effectively gives money DIRECTLY to the top 0.01% wealthiest of people: wealthy traders, Bank CEOs, Bank officers and their entire bank trading divisions to "pump up the market." 

 

Because of the repeal of Glass-Steagall, there is no limits as to what these banks can do with those new deposits. Without Glass Steagall, all of the favored money center banks are now giant hedge funds who can use YOUR DEPOSITS and the Fed's new deposits to buy stocks, bonds, derivatives or anything else.  They are certainly buying stocks which helps-out the already wealthy AND THE BANKS THEMSELVES.  It's a PONZI SCHEME.

 

They've created an enormous bubble in equities and a huge amount of confidence in small investors that the market can never go down!  The wealthy own 90% of stocks including most members of Congress.  They, and all the very wealthy, are being FURTHER enriched beyond our wildest imagination.  Like I said, it's the final looting of America by the wealthy---who are the first to receive the "new" money.

Washington DC needs to be nuked. The country would be much better off both here and abroad. It's an entirely evil enterprise now with nothing but evil, corrupt people "in charge."