Welcome Comrade...To The Real World...; How the SYSTEM works

From the blog of this brilliant mind:

[link to hypertiger.blogspot.com]


Welcome Comrade...To The Real World...

By Cheryl-Lynné Rose Henderson


The U.S. dollar's worth is a figment of everyone's imagination pure and simple... The basis for the dollar is Government bonds... What's worth more $10,000 in bonds or $10,000 in cash? The bonds, because the bonds gain value with compound interest while cash loses value from the compound interest... But their worth is just a figment of people's imagination... Now what is the future? All paper assets will become worthless because not very many people can comprehend the Fractional Reserve system at the basic level. Forget all the complexities and conspiracies piled on top of lies and half truths. It is so simple...

The Economic system of the current world civilization has not changed in 400 years... Central Banking based on fractional reserves. But something did change slightly in 1971.

Before the Gold Window closed the fractional basis for the U.S. Dollar was GOLD. How does that work?

Many years ago when gold coin was the currency Banks did not exist... The only group that had the necessary facilities to store wealth in the form of gold coins was the GOLDSMITHS. People would store (Deposit) their gold and the goldsmith would give them a receipt. The people found it easier to carry receipts to market than gold after awhile and the receipts became as "good as gold." The Goldsmiths noticed that at any given time 90% of the gold in their vaults just collected dust, so the goldsmiths started loaning gold in the form of receipts on top of just making phony receipts. The gold market to this very day is run like this... as long as people will take paper instead of GOLD you will never run out of GOLD and paper is almost endless.

One slight problem was found with this system: DEBT INFLATION. As Debt inflation grows the 'receipts' lose buying power two ways a) the compound interest charged on the 'loans' destroys the value of the receipts b) The counterfeit receipts and loans increase the supply of buying power which causes prices to rise which adds to or compounds the destruction of buying power.

And the biggest problem with DEBT inflation is that the bigger the DEBT grows the less GOLD there is to back up the DEBT so eventually the system will grow continually weaker until there is no backing any more for the receipts in circulation.

At the start of Debt deflation 1,000,000 receipts are in circulation with 10% backing by gold, so as long as only 100,000 receipts are exchanged for GOLD then there is no problem. But if DEBT INFLATION reaches MAXOUT at 10,000,000, then only 10,000 receipts are needed to suck up all the gold…

I could go on an on about how it evolves from that point but you hopefully see what I am saying…

DEBT INFLATION causes the Fractional System to become very weak...But today the backing of the U.S. Dollar is not gold but Bonds and the bonds are backed by the American people, so are the American people good as gold? That’s called slavery to be owned in such a way...

Bonds have compound interest attached to them so they rise in value as you hold them and are backed up by the American people so just what are the American people backed up by? Gold? No, the U.S. Dollars which are losing value in relation to the bond's compound interest rate… How are U.S. Dollars created? Every time Money is borrowed from a bank it is created out of thin air with compound interest attached to the debt/money which destroys the value of the money causing inflation. How does inflation work?

Let's say the money supply is $1000.00 and the compound interest that is destroying its value is 5%; if the money supply is $1000.00 and it costs $1000.00 to run the economy where does the money come from to pay the 5% interest rate from? Borrowing! Or Debt inflation.

Why Borrow? Well let's say you tried to save up to buy a house it could take 10 years but the bankers will create the money out of thin air for you if you don't mind paying them 5% compound interest/year for the money they created out of thin air.

By buying a house and borrowing the money to do it you have added to DEBT/money inflation. Why does debt inflation cause prices to rise? COMPOUND INTEREST. The more debt that is borrowed the more compound interest that is due...Compound Interest can never be paid off…

Eventually a strange thing starts to happen. In order to pay the compound interest, the speed that the economy has to run at has to be increased by being made more efficient or borrowing has to be increased or both which leads eventually to the ever popular HYPERINFLATION as more and more compound interest is created by the DEBT used to pay the compound interest.

Well that means we have unlimited resources right? Yes as long as the COMPOUND INTEREST can be paid by continually borrowing or creating DEBT to do it.

Unfortunately this process has an 'upper limit.' Once the 'economic activity' slows or stops, then the ability to create debt also slows or stops which in turn causes the inability of compound interest to be paid. And deflation begins which can only be stopped by bankruptcy or resumption of inflation…

Ok what is economic activity?

Economic Activity is the living process of human beings or everything that human beings do on a daily basis to contribute to their survival… Food, clothing, shelter and all the tools needed to accomplish their goal of survival on the planet EARTH.

What causes Economic activity to slow or stop? Reduction of borrowing required to accomplish the goal of survival such as everyone having enough shelter, enough food, enough clothing, enough tools - also Death puts an end to economic activity and various other things you get the point there is an upper limit to debt inflation.

Fractional reserve economics in its most simple to understand form

Compound interest creates debt inflation which causes economic activity to increase = life

But when inflation slows or stops due to economic activity slowing or stopping then…

When economic activity slows or stops Debt deflation begins which destroys the ability for compound interest to be serviced = Death

Or

Debt inflation = Life
Debt deflation = Death

Life and Death for whom? The payers of the compound interest created by the fractional reserve banking system namely the 6 billion people of the planet EARTH.

How do 'we' stop this highly destructive system? How do we break free from the slavery of Compound Interest? Answer: Abolish Compound Interest.

How do we abolish compound interest? That has been the 'real' dream of slaves since the beginning of recorded history and that is the 'secret' that the 'Powers That Be' or 'slave owners' never want the slaves to figure out. They will coat the planet with blood to maintain control and prevent the 'secret' or cause of all human misery suffered to be figured out or lead back to the source.

And basically the human race is filled with morons who will never figure this out because that is where 'we' are right now. THE WORLD DEBT has inflated to its maximum potential and economic activity has slowed, or stopped in some cases, and the ability of the human race to service the compound interest is at an end and Debt deflation has taken hold permanently... nothing can stop the debt deflation because debt inflation has reached maximum potential. The only thing that stops deflation in a fractional reserve banking system which has reached the maximum potential is 'Bank'ruptcy followed by collapse of the system itself until all debts are wiped out which in turn wipes out compound interest…

So now you know the 'SECRET,' which is:

COMPOUND INTEREST, NO MATTER HOW BIG OR SMALL AND IN ANY SHAPE OR FORM, LEADS TO EVENTUAL COLLAPSE OF THE FRACTIONAL RESERVE SYSTEM.

And since human civilization is dependent on fractional reserve banking it will collapse too…

Any one that doesn’t believe the above after reading this is a traitor to the human race and is in contempt of all things good...

What do we do about it? Answer: It is too late to do anything about it, or is it?

The World economy is finished…

Do you see yet? If you need evidence just ask and I will give you enough evidence to make you so sick that you will want to commit suicide so what's the point of that?

We are in the final stages of the "Good Old Days"...Fractional banking is doomed to failure...

This is how 'modern' Fractional Reserve banking has worked for 100’s of years.

Phase/Stage 1

Everyone’s favorite drug INFLATION of Debt…

Once the maximum potential for debt inflation is reached phase/stage 2 begins.

Phase/stage 2

DEFLATION of debt, How or why?

Compound interest is the price to sustain inflation. As long as you can pay the price, inflation will continue and your hopes and dreams will usually come true. Once you can not afford the payment your hopes and dreams will not come true. Simple

The only way to pay compound interest is to borrow money/create debt. Once borrowing slows or stops compound interest can not be paid and debt deflation is the result.

Aren’t we just in a mild recession or "soft spot?"

No. In the past there was 'slack' in the economic system. What is slack? 'SAVINGS' With the introduction of computers the economists have figured how much everyone has, and marketing specialists have figured out how to get it. The charts below are some evidence that the slack is gone...

We are just in the beginning stages of deflation.

Phase/stage 3

'Bank'ruptcy

Complete collapse of all interconnected banks in the system. Since the US dollar is the world reserve currency the world banking system will collapse. Plain and simple.

Recap of the “LIFECYCLE” phases/stages of fractional reserve banking.

Phase/stage 1 = debt INFLATION

Phase/stage 2 = debt DEFLATION

Phase/stage 3 = 'Bank'ruptcy

Simple as 1,2,3

We are on the verge of total world economic collapse and resource wars of conquest...

It is you who own nothing...Do you think you own something? What makes you think you own something? Private property?

The entire money supply of the world is composed of debt owed to someone else...There is no money, it is a figment of your imagination...

The figment will begin to end in a few more months...and the people who created that figment will provide you with more figment scapegoats for you to consume...

You are dancing to someone else's tune all the while you think you are not...

You will play your part and are playing your part to a tee...

Don't believe me? Don't worry, unless you die very soon you have a front row seat...Then you will see what you truly own...other than the figments of your imagination, nothing of any real significance...

Yes, sign this piece of paper agreeing to pay me back...where does money come from? The current system is an evolution not a stand alone system...the debt backed by debt fractional reserve system needs an economy to begin with... the previous system was the gold backed fractional reserve system... which was not a stand alone system either and the system before that was usually a bimetal silver and gold system and barter...

The debt backed by debt fractional reserve banking system is one in which the top requests that a bank create short term debt "out of thin air" at wholesale cost to be sold to a lower member of society at retail...

Borrow $200,000 at 3% for six months to construct a house and mark it up to $300,000...then find a dreamer...someone that is convinced that life is great and he needs a house for him and his family... to sign on the dotted line and agree to pay back the loan over a 30 year period at 6%.

Net profit to the person who doesn't work for a living after expenses is let's say $40,000 pure profit...

What if it was 10 houses? That would be an increase in money supply which is debt created out of thin air owed to a bank of 3 million dollars in just six months... how about 100,000 houses like in the US in a month...an increase of the money supply that is debt created out of thin air owed to banks of around $30,000,000,000 looks like "inflation of the money supply" to me.

What does the top do with all that profit they are sucking off the masses? Using it as a basis for more wholesale debt creation out of thin air to be sold to more dreamers at retail...This continues until no more houses are needed and then what? $30,000,000,000 of created out of thin air debt disappears...unemployment rises and buddy who bought the first house loses his job but he is going to give it the old college try and survives for a year but can't make the payments any more and he decides to sell his house but guess what? the price has dropped due to all the people selling and he owes $240,000 but the house is only worth $100,000 he drives the wife and kids to her parents house because she considers him a loser and a failure and he goes to a work camp and a tree falls on him and he is dead...

But what about the house? It is repossessed by the bank and it is auctioned off for $20,000 to the original builder and he rents it out...Honey great news we can leave this misery behind and go on vacation with the kids...life is wonderful...

Simple yes but the basic mechanics of inflation and deflation are there...The absolute capitalist at the top wipes out the social capitalist...100% legitimately... Now your leftist enemy foolishly thinks that taxing the rich and giving to the poor helps but that only accelerates the suck from the bottom to the top...prices get marked up higher and profits are moved offshore...

The fractional reserve banking system controlled by a central bank is one of the planks of the communist manifesto... The Federal Reserve in the US which is owned by the Bank of England is part of this system so is the bank of Japan and all the central banks on the planet...basically

That's absolute capitalism so will you be signing any papers? Who gets the better deal the absolute capitalist or the simple minded social capitalist?

Graduated income taxes are another plank of the communist manifesto

The way to crush the bourgeoisie is to grind them between the millstones of taxation and inflation.

----- Vladimir Ilyich Lenin
All the people who own the system depend on is that the Government left, right or center grow dependant on their ability to create money out of nothing...the true source of political power...

Welcome comrade...to the real world...