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As long as you have the Federal Reserve System operating with a monopoly on the creation of debt-based money out of thin air, a few things are inevitable: 1. The system requires continued growth in order to remain viable, ever increasing as interest on the fake money is compounded. When the Fed says their aim is 'price stability', that means they will inflate the currency at the same rate as economic growth. This means that they rob the population of all increases in productivity, because prices should fall when productivity rises, not stay 'stable'. But stable prices are impossible when all currency is borrowed into existence because the interest to repay it must be borrowed, too, and mathematically you will reach a point where the interest and borrowing must accelerate out of control. 2. When, through socialist regulation and taxation, the producers are killed off below a certain point, that growth falls below the minimum. Price stability is a forgotten joke as inflation and taxes eat away at the capital required to fund ongoing operations, and growth becomes a thing of the past. 3. The system can continue on inertia alone, by pumping more fake money into it, until foreign creditors begin to lose faith in the dollar. 4. The system has to inflate the currency, or it collapses. The only tool the Fed has is to inflate slower or faster. When it inflates faster, economic activity increases (bubble) but prices rise as the dollar falls in value (collapse). As the debt increases, it takes exponentially larger infusions of cash to get any increase in production, leading eventually to hyperinflation. When the Fed inflates slower, economic activity slows down. 5. When production of real goods has been choked off below a certain point, the Fed has to resort to faster inflation in order to temporarily keep the commercial banks from failing. But high interest rates will be necessary to get lenders to continue buying debt, especially when the debt is losing value. An increase in rates will be necessary to prevent a total collapse in the value of the dollar. But a sudden increase in rates will pull the rug out from under the house of cards, same as in 1929. The commercial banks are on the verge of failure already, and the mortgage fiasco is being papered over with more paper. That is why the Fed is panic - lowering rates even as the dollar tanks and gold sets record prices. Watch out for the day when the Fed reverses course on interest rates! The Fed is now in an untenable position. There isn't enough production left to steal from at a sustainable rate now, and when rates are raised and the real contraction begins, look out!
6. The mathematical end of the debt-based fiat currency is upon us. We are probably in for a Depression worse than the 1930's. The end result of a debt-based fiat currency system is that the lender of last resort, the Federal Reserve Bank, ends up with all the currency, title to most of the real estate and other assets, and control of the government.
Conclusion:
A parallel to this is the idea that it matters not who votes, but who counts the votes:
Under a monetary system like this, the bankers need not worry what kind of government system is in place, who robs what from whom, or what they call it. They profit when the nation profits, and they end up with the property when it doesn't. The government pays them if it is honest and leaves people alone, and it pays them much more if it is dishonest, redistributes wealth, kills off industry, and hobbles itself with regulations from whatever loony group claims the most attention. It just doesn't matter! The one and only thing that threatens their system is a currency that stands on its own, that doesn't have to be borrowed into existence.
Quibble about socialism or unfettered corporatism (while calling it capitalism, which it most emphatically is not) all you want. Either way you buy into the paradigm which continues their ownership of your labor and of the entire system, and prepares you for the final solution that will be put into effect when the currency fails.
Are you ready? Is your retirement in some mutual fund? Or in the non-existent Social Security Trust Fund? Who will you turn to when you have no job, you can't pay your mortgage, and your children are starving?
I'll tell you where you will turn to -- the government. People will demand that the government feed them, house them, and clothe them, whatever it takes. Pragamatism got them here, and principles matter little now, when real privation is upon them. Capitalism was tried and it failed, they will say. Force people to produce, and give it to us, they will cry. The last of your freedom will be gone, and you will never realize what robbed it from you, because you never realized that money should be a store of value, not just a symbol of it. You should own it, instead of it owning you by consisting of a promise to tax you more later. It should be actual value, not debt. Money that has actual value frees the owner of it, money that is debt enslaves everyone except the creator of it.
Wealth is created and consumed. It is actual material grown or dug up out of the ground that has human thought and effort applied to it to make it useful to other humans. Division of labor increases productivity and makes trade necessary, while leaving a surplus above subsistence level. Money facilitates fair trade and makes wealth portable and durable enough to save. Money that has no value and must be borrowed into existence is a tool for the enslavement of man. It slowly robs value out of the economy until the day when industry is choked off below the level where it can sustain the load. The tool is put into effect, and your enslavement is complete, only by your ignorance of this simple truth.
Because the government borrows all of this money into existence, the only 'economic stimulus package' that could possibly work would be to slash government spending to less than half of current levels, and return millions of people to productive work instead of eating out our sustenance. If they did it today, it might not be soon enough to prevent a collapse.
Will you open your eyes in time? I doubt it.
I see the U.S. going from being a nation of beggars, liars, and thieves to a nation of miserable slaves. Have a beer and vote for a republocrat, maybe it'll never happen.
