Tuesday, 3 July 2012

End of the Fiat Currency and Money as Debt


Debt Based Banking: It's All About to End


This is from a new blog by Andrew Kemp.  He come's out of the gate swinging with this article!  Welome to fray Andrew!

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Business Insider: It’s All About to End
Posted on July 1, 2012


Sorry for the doom and gloom, but it really isn’t. When is the beginning of the end of a prison a bad thing when the good guys are on the inside and the guardsmen are bankers?

When I say ‘It’, I don’t just mean a snivvly little recession, or even a depression, I mean the whole system of fiat currency and debt financing. As a recap, fiat currency is not backed by anything, so its value is only what people trust it is worth. Now that people are realising that our money is NOT backed by gold or metals or anything, and that even making money out of thin air won’t solve the problems, our trust in the very paper money causing the problems is, well, nil. When I say ‘debt financing’, I mean that everything is based on debt. This starts with the central banks, which lend money to governments and populations at interest, which requires more money to be printed to pay off the original currency issue, and so on and so on.

The first video explains the debt financing side of things, and the second video explains the fiat currency side of things (fractional reserve banking). Take both together, and you can see that we are deliberately indebted with money that is worthless:




How Fractional Reserve Banking Works

http://www.youtube.com/watch?v=W3hLKpKv3ME&feature=related




Now, Business Insider has four articles all at once that say ‘the game is over’!

Article 1: Why The Debt-Dependent Status Quo Is Doomed in One Chart (click to go to article)

In a nutshell, this article explains why the world can no longer pay for its debt, and thus, the system can no longer keep going. Here is a fancy-looking graph that shows that our economies are addicted to debt-financing – ie when we can no longer raise and pay for new debt, the economy suffers (ie has no actual cash reserves to carry on):


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