Saturday, 19 January 2019

Credit=Debt....................from Rico

John Pierpont Morgan was nobody's fool. His financial acumen created a legacy that remains with us today.
- JP Morgan famously said "Money is Gold, and nothing else" which is often misquoted as "Gold is money, everything else is credit." He was right either way, and he never had to face 'the Minsky moment' that central banking has created for Western finances today.
 
Having read "When Money Dies" [it's about Weimar, but think Venezuela for a modern context] it strikes me that there are 'patterns' that have repeated often enough, all resulting in the failure of paper currency 100% of the time, that the same pattern can be expected to produce the same result again...100% of the time. [Think: What happens when paper dies?]
- Back to JP Morgan. What did he mean? He meant Gold cannot be 'cheated' like a paper currency can, and credit always is.
 
Follow the financial transition from Freedom to Indenture, to it's logical conclusion Slavery:
1. FREEDOM. 'Backed' paper currency (Valued in Gold/Silver can be 'earned' or 'saved' but it holds no debt, being merely a claim check on physical precious metals. To hold no debt is FREEDOM.
 
2. INDENTURE. This has been replaced by 'debt paper currency' which is borrowed into existence and 'backed' only by debt incurred. You can 'pay it back' or you can 'service the interest on the debt' but you somehow have to 'work off' the debt. Holding debt currency is INDENTURE.
 
3. SLAVERY. Consider the 'next' financial idea coming our way to be 'demand currency.' It will be 'demanded' into existence (people need something to facilitate trade), and this currency will be backed by even less than debt currency...it's only backing will be demand for it. Demand is relatively easy to central banks to create...and 'manage' and 'manipulate.' This will be a never-ending cycle that can never be accumulated/saved, or worked off. This will be unending SLAVERY.



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