The Coming Economic Collapse And The Next Great Depression

The Coming Economic Collapse And The Next Great Depression
The forgotten man painting by McNaughton (click image for video) I believe this image best exemplifies where we stand today, pun intended.

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Friday, December 23, 2011


Those that propose that governments pay off their debt expose
themselves as not having an understanding of how these modern
currencies “work”. Every note you have in you pocket or your
accounts was borrowed into existence.
These are debt fiat currencies. If the government or the
private sector reduces debt by one dollar then the total money supply
is reduced by one dollar. Money comes into existence through borrowing
and is destroyed by paying off debt. I know that to some here that
must sound like heresy and I would agree with you but none the less
its true. So we have this monetary system where if all debt is paid
off there would be no money. A system that REQUIRES constant and consistent
growth in order to survive. Anybody seeing the problem here? During
good times the private sector takes on debt. Debt as explained above
is how money comes into being. When the private sector stops taking on
debt the government steps in to replace the private sector borrowing
on top of its own borrowing. They have to keep that curve positive or
everything implodes as money supply shrinks.
What we are seeing is the predictable end to an unfair and unjust
monetary system. Fiat currencies have never worked in the past they
have an average life expectancy of 42 years, currently the world has
been on a pure fiat currency for 40 years. So I guess we will see if
the average holds. First for all those hoping upon hope that we will
find a way out of this, do yourself and those you love a favor and
realize that there is no way out. The currencies will be destroyed.
That is a fact not opinion. After you go through the 5 stages of
denial promise yourselves that you won’t get fooled again, because
right after the currencies implode they will come up with a new one to
replace the old one just like the last one.
Only a government can take a perfectly good piece of paper and reduce
it’s value by making it money.

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