SnowDog wrote: > > Let's say the 'Great Reckoning' > > all happens and the USD goes to hell. The credit cycle is over! > I don't understand. How do you envision this 'end-game' scenario coming > about? What do you see happening to the value of the USD, and how can it > significantly change in value?
The corruption in government which accompanies the continued use of our unlawful monetary system rubs off onto the rest of us. A continuous loss of buying power of the currency means more cunning, scheming, and sharp dealing among the people if they want to prosper. It becomes him or me, as worsening economic conditions force many businesses and individuals to the wall. Have you had to turn in your gun yet, your gold again? Did you have to provide your Social Security account number for a recent pizza delivery? Did you have to remove your clothes to board an airoplane? Did your Enron pure gas play 401K legally vaporize, while your terrorist account froze dead (seized)? So these Federal Reserve checks are endorsed by the government, deposited in a Federal Reserve bank, and used to pay government expenses by checks which create the first wave of fiat (unbacked paper) money that floods into the economy. Recipients deposit these checks into commercial banks that are part of the Fed system. Here is where the real inflationary action is. Commercial banks, like the Federal Reserve, also create money out of nothing - and collect interest on it - by multiplying every dollar deposited nine times. This amazing feat is accomplished through the device of fractional reserves. The Fed allows 90 percent of deposits to be loaned out. As deposits become loans and loans become deposits, this process repeats with smaller numbers each time around. The Fed Res banking cartel creates an amount of money that is nine times the amount of the original government debt that made the process possible. When the original debt is added in, the Federal Reserve and the commercial banks together have created approximately ten times the amount of the underlying government debt. Since this newly created money causes the purchasing power of all money to decline, the resulting rise in prices is a hidden tax. This system is doomed to fail in your life time, sooner than later. He held his wealth in paper. Then came the dollars Doom. His caskets lined with greenbacks and T-Bills mark his tomb. Kind Regards. Mark S. Öhberg http://two-cents-worth.com/?107245&EG --- You are currently subscribed to e-gold-list as: archive@jab.org To unsubscribe send a blank email to [EMAIL PROTECTED] Use e-gold's Secure Randomized Keyboard (SRK) when accessing your e-gold account(s) via the web and shopping cart interfaces to help thwart keystroke loggers and common viruses.
