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  • Hyperinflation - coming or not

    Here is an interesting point of view to start this subject off:

    Lately, I've run across a number of articles warning people to prepare themselves for hyperinflation in the United States. Inevitably, these warnings are accompanied by comparisons to Germany's Weimar Republic and its infamous bout with hyperinflation in the aftermath of World War I.
    But is this really something to be worried about?
    To answer that question, we must first understand what hyperinflation is. In simple terms, hyperinflation is a rapid increase in the general price of goods and services, brought about as a result of a rapidly expanding money supply.
    Given the current worldwide credit crunch and subsequent actions by the Federal Reserve, a number of people are predicting a period of hyperinflation for the United States.
    These commentators point to the U.S. Treasury, the Federal Reserve, and the massive amounts of "liquidity" each institution is injecting into the marketplace. Their theory rests on the assumption that in its drive to end the current credit crisis, the federal government is essentially printing money in order to stimulate economic activity.
    Since the U.S. dollar is a fiat currency, meaning its sole value is derived from a holder's faith in the promise of the U.S. government to back it up, no limits exist on how much currency the government can print.
    The theory goes that as the U.S. government prints more and more dollars and extends more and more credit, the value of its fiat currency is eroded and the world is flooded with an excess supply of U.S. dollars.
    As a direct result, it takes more and more U.S. dollars to purchase goods and services.
    Based on these assumptions, quite a few websites are advising readers to be on the look out for hyperinflation and to prepare themselves and their families accordingly. As such, people are being encouraged to buy gold, silver, and other precious metals as a hedge against hyperinflation.
    This is sound advice if the diagnosis of hyperinflation is correct. But unfortunately, it's not.

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    The Real Threat

    I know I'll receive a barrage of emails from well-intentioned people who are convinced our current economic environment is setting people up for a nasty bout of hyperinflation. But it's just not true, and in good conscience, I can't let these claims go unanswered. United States citizens, and most people throughout the world, should not be preparing for the mythical threat of hyperinflation.
    In fact, they should be preparing for the exact opposite.
    The real threat of the current financial crisis is deflation - a general decrease in the price of all goods and services as a result of a contraction of the global money supply. In short, deflation is a net contraction of base money and credit while inflation and hyperinflation are the opposite.
    What's Really Happening...

    The hyperinflation argument is built on the faulty premise that the money supply will dramatically increase in the near future, while demand remains steady, thus increasing the general price of all goods and services.
    However, if we observe the world around us, we see the exact opposite forces in effect.
    This is because the money supply is a total of all currency, coin, and credit in the marketplace. Take note that physical U.S. dollars a person can actually hold in his hand account for only a small fraction of the money supply. The remainder of the money supply essentially consists of credit or IOUs held in the form of various financial instruments.
    In our fractional reserve banking system, the money supply expands in tandem with the expansion of credit. Yet, right now, all the indicators are signaling that the days of easy credit are over. The extension and acceptance of credit is contracting.
    Simply put, fewer institutions are willing to lend money, and fewer institutions and individuals are willing (or able) to borrow.
    As individuals and institutions default on their debts, the debt instruments (money) decline in value, effectively decreasing the money supply.
    While I've put this in very simplistic terms, the fact of the matter is that we're in the midst of a massive global credit crunch, the effective result of which is a worldwide contraction of the money supply.
    Furthermore, we're witnessing a tectonic shift in consumer spending attitudes as people turn away from the recent past behavior of borrow and spend to a more realistic view of work and save.
    This means total demand for consumer products throughout the economy is in general decline.
    While it's true that the United States is issuing new currency and coins at an unprecedented rate, this increase in the base money supply (physical currency) is increasing at nowhere near the pace at which credit and consumer demand are being destroyed. The net effect is deflation.
    In an earlier article, I wrote about the declining value of the U.S. dollar:
    "Anyone in touch with the world today knows that the dollar is losing value on an almost daily basis. The dollar has fallen relative to oil, gold, silver, and every other commodity on the planet. Although this fall won't last forever, it's a clear symptom of an ominous future for the dollar's underlying value."
    When the above statement was made, the world was near the pinnacle of the largest credit bubble in world history. The easy extension of credit over the course of several consecutive years dramatically increased the money supply. Since demand for the dollar remained relatively stable over that same time period, an increase in supply resulted in a lower price for dollars. In other words, the dollar lost value. As credit expanded (increasing the money supply along with it), it took more and more dollars to purchase gold, oil, silver, food, gasoline, houses, and just about everything. Essentially, the world experienced rampant inflation for the greater part of this decade.
    The idea that "peak oil" or increased demand or anything other than speculation and a general decline in the value of fiat currency was responsible for $147 a barrel oil is simply dead wrong. An ounce of gold will purchase approximately the same number of barrels of oil today as it would have purchased ten years ago. Inflation, caused by the rapid expansion of credit, was the driving force in the rising price of oil - as well as the rising price of just about everything else.
    What's Going On Now...

    When the massive credit bubble burst, it led to an immediate contraction of the global money supply - a contraction that is still in the process of unraveling. This isn't entirely the result of massive debt defaults, but also the product of a global race to hoard cash in order to service debt and make adequate provision for the future. Financial institutions are hoarding cash in order to guard against future losses and meet government reserve requirements. Corporations are hoarding cash as they watch past lines of credit disappear. And individuals are hoarding cash as they face the prospect of job layoffs as well as mounting debt obligations. So, not only is the money supply contracting, but demand for cash has increased.
    This demand for cash has had, and will continue to have, worldwide implications. In an effort to increase their cash holdings, corporations, hedge funds, and individuals have been selling assets.
    As a result, we've witnessed a general price decrease in just about every asset class. The price of gold is down. The price of oil and gasoline is down. The housing market is down, and the stock market is down.
    In such a world, the idea of hyperinflation is almost laughable. This isn't an environment that breeds hyperinflation.
    It's an environment of widespread deflation.
    The Deflationary Spiral

    Unfortunately, a deflationary environment is one of the worst economic situations possible. Consumers, faced with unemployment, or the very real prospect of unemployment, curtail discretionary spending, and the collective result of their efforts is lower profits for many businesses.
    Faced with decreased demand and poor cash flows, businesses throughout the economy respond by trimming their workforce. This, in turn, further derails consumer spending since the jobless are not a reliable source of customers for most businesses.
    In addition, the gainfully employed cut back on spending and hoard cash in preparation for the next round of layoffs. And on and on... The vicious cycle just feeds itself.
    This is the same situation which plunged the world into the Great Depression.
    So where does it all end? Unfortunately, government efforts to "fix" a crisis government created in the first place will inevitably fail. The Federal Reserve Board can cut the discount rate and the fed funds rate. Other central banks throughout the world can follow suit, and they have. Governments can guarantee bank deposits, buy up debt obligations, nationalize banks, and run the printing presses night and day. But in the end, all of these efforts will be futile in attempting to spur economic activity.
    Why?
    Because, in the end, governments can't make lenders lend and borrowers borrow.
    And until lenders are willing to lend, and borrowers are willing (and able) to borrow, the credit side of the money supply equation will continue to contract, and the economic landscape will continue to deteriorate.
    Collapsing debt obligations, rising foreclosures, rising credit card defaults, and rising unemployment are deflationary forces. And these events are not exclusive to the United States. The credit crisis is worldwide. Only after the debt bubble fully deflates (i.e. the foreclosures and bankruptcies end), then - and only then - will credit and economic activity expand.
    Once that happens, inflation will become a threat once again. But for the moment, inflation and hyperinflation are no where on the horizon.
    That said, we remain in a severe global economic downturn. So what does all this have to do with bible prophecy?
    Economic Crises Give Rise to Despots

    If history provides any indication, times of economic crisis are especially susceptible to the rise of demagogues and despots.
    Historically, political leaders take advantage of both perceived and real crises in order to increase the power and scope of government. The current credit crisis is no different.
    Already governments throughout the world have taken advantage of public fear and hysteria, drafting massive bailout packages to select corporations and industries, temporarily suspending the rules and regulations of financial markets, and forcing the nationalization of banks and other private industries.
    Recently, several prominent world leaders issued a clarion call to "rewrite the rules of international finance." In the meantime, each of these government power grabs occurs against the backdrop of a citizenry which is ever increasingly looking toward government as its Savior.
    In an environment such as this one, ambitious individuals have been know to push through bold and radical agendas with relatively little opposition from the public. A hungry and unemployed public places far more emphasis on jobs and security rather than freedom and liberty.



    Our last deflationary spiral, The Great Depression, is instructive in this regard. The economic deflation of the 1930?s gave rise to Adolf Hitler in Europe and Huey Long in the United States. Few people realize that Huey Long had successfully transformed Louisiana into his own personal police state. Had he not been assassinated in 1935, Huey Long might well have become President of the United States, effectively giving America its own dictator.
    History is clear, an economic crisis is fertile ground for a demagogue.
    The Antichrist

    As world leaders such as UK Prime Minister Gordon Brown issue calls for building a "global society," the stage is being set for the most infamous dictator in human history to seize power. Known as the Antichrist, the bible states that, in the last days, this man will come to control all of the world's economic activity:
    "He required everyone - great and small, rich and poor, slave and free - to be given a mark on the right hand or on the forehead. And no one could buy or sell anything without that mark, which was either the name of the beast or the number representing his name." Revelation 13:16-17 (NLT)
    In fact, he will exercise complete power over every person on earth:
    "And he was given authority to rule over every tribe and people and language and nation." Revelation 13:7 (NLT)
    This is why the current economic crisis is of dire consequence to the people of the world. While we can't know for sure whether this particular crisis will give rise to the Antichrist, we can be certain that the calls for increased global cooperation, global government, and governmental power over the free markets are setting the stage for a single man to seize control of the entire earth.
    How the World Can Recover

    While most of the world anxiously looks toward government for answers to the current economic turmoil, Christians can move forward with bold confidence. Why? Because the bible provides us with the guiding principles for curing this economic ailment. If the rest of the world had followed, or would dare to follow, biblical principles in its financial dealings, then the current economic crisis would be a non event.
    While most of the world grew drunk on the excesses of debt, the bible issued dire warnings of its pitfalls:
    "Don't agree to guarantee another person's debt or put up security for someone else. If you can't pay it, even your bed will be snatched from under you." Proverbs 22:26-27 (NLT)
    "Owe nothing to anyone - except for your obligation to love one another."Romans 13:8 (NLT)
    "Just as the rich rule the poor, so the borrower is servant to the lender."Proverbs 22:7 (NLT)
    It's not too late for the world to start following the biblical principles of finance, but unfortunately, the world will follow its own path.
    Conclusion

    Hyperinflation is not a concern right now. The world is in the midst of a deflationary spiral similar to that which caused the Great Depression, and this period will probably last several months or years. Nevertheless, Christians shouldn't be overly concerned with our preparations for dealing with the ills of this world. While we should make wise provision for the future, if we first pursue the Kingdom of Heaven above all else, then we will be capable of easily enduring any number of economic conditions, from deflation to inflation and hyperinflation.
    A life which glorifies Jesus Christ should not be overly concerned with the fleeting value of earthly wealth. For it can thrive in any condition:
    "Not that I was ever in need, for I have learned how to be content with whatever I have. I know how to live on almost nothing or with everything. I have learned the secret of living in every situation, whether it is with a full stomach or empty, with plenty or little. For I can do everything through Christ, who gives me strength." Philippians 4:11-13 (NLT)
    Regardless of the material condition in which we find ourselves, we should live our lives in the service of Christ.
    Our faith should not be in stock markets, pensions, or job security. Our faith shouldn't be in the provisions we've made or the gold and silver we've hoarded in anticipation of an economic collapse.
    Our faith should be in Christ alone.
    For this faith is the foundation of all the wealth we will ever have:
    "The rich think of their wealth as a strong defense; they imagine it to be a high wall of safety." Proverbs 18:11 (NLT)
    "Teach those who are rich in this world not to be proud and not to trust in their money, which is so unreliable. Their trust should be in God, who richly gives us all we need for our enjoyment." 1 Timothy 6:17 (NLT)
    Christians have far more than the riches of this world; we have the riches of Christ.
    "And anyone who believes in Him will never be disappointed." 1 Peter 2:6(NLT)
    "Don't store up treasures here on earth, where moths eat them and rust destroys them, and where thieves break in and steal. Store your treasures in heaven, where moths and rust cannot destroy, and thieves do not break in and steal. Wherever your treasure is, there the desires of your heart will also be." Matthew 6:19-21 (NLT)
    Originally posted November 13th, 2008

    Britt Gillette is the founder of End Times Bible Prophecy and the author of Signs Of The Second Coming: 11 Reasons Jesus Will Return in Our Lifetime.

    Note from Lou:

    I would like to make a comment on the scripture below that the author referred to:

    "And he was given authority to rule over every tribe and people and language and nation." Revelation 13:7 (NLT)

    We need to also read the verse above:

    Rev 13: 2 The beast I saw resembled a leopard, but had feet like those of a bear and a mouth like that of a lion. The dragon gave the beast his power and his throne and great authority.

    We do not have to fear the beast. For his authority and power do not come from God, but from Satan. That is IF we are trusting The Lord Jesus, and no one and nothing else, to save us. For Jesus will surely save us.
    Last edited by Lou Newton; May 14, 2016, 12:17 PM.

  • #2
    Our global economy is held together with string and cheap tape. It needs repair or it will fail. The deflationary period we are in will end and we could have hyperinflation afterwards. Either way it's not good.

    Comment


    • #3
      Originally posted by Steve Hollander View Post
      Our global economy is held together with string and cheap tape. It needs repair or it will fail. The deflationary period we are in will end and we could have hyperinflation afterwards. Either way it's not good.

      Thanks for the reply Steve. Amen. I do not think anyone knows what is going to happen, or when it will happen, except for The Lord Jesus.

      Many men have taught that the end times will have hyperinflation from the scripture below:
      Revelation 6English Standard Version (ESV)

      The Seven Seals

      6 Now I watched when the Lamb opened one of the seven seals, and I heard one of the four living creatures say with a voice like thunder,“Come!” 2 And I looked, and behold, a white horse! And its rider had a bow, and a crown was given to him, and he came out conquering, and to conquer.
      3 When he opened the second seal, I heard the second living creature say, “Come!” 4 And out came another horse, bright red. Its rider was permitted to take peace from the earth, so that people should slay one another, and he was given a great sword.
      5 When he opened the third seal, I heard the third living creature say, “Come!” And I looked, and behold, a black horse! And its rider had a pair of scales in his hand. 6 And I heard what seemed to be a voice in the midst of the four living creatures, saying, “A quart of wheat for a denarius, and three quarts of barley for a denarius, and do not harm the oil and wine!”

      But one should also think of the things below:

      1 - These men believe that the Revelation is only about the future, and that is wrong. For The Lord Himself says this in the Book:
      1 The revelation of Jesus Christ - The book is NOT the Revelation FROM Jesus Christ, but it is the Revelation OF Jesus Christ. If one reads the book they will see the whole book is about revealing The Lord Jesus.

      8 “I am the Alpha and the Omega,” says the Lord God, “who is and who was and who is to come, the Almighty.”

      It is not about the future, but it is about Jesus who was and is and will be. It is about the revelation of The Lord Jesus that has taken place in the past, the present, and the future.

      Considering this, this passage is NOT about the future, but it took place long ago. When did Jesus tell men that they would have WAR, FAMINE, and DISEASE. He told Satan, Eve, and Adam they brought these things upon themselves when they disobeyed Him.

      So this is not about the end times only, but it is about men disobeying God and bringing these things upon themselves to cause them to seek God.

      2- Hyperinflation can have more than one cause. A inflated supply of money will lessen the value of money and can cause hyperinflation. If gold was as common as sand it would not be valuable. Why pay a lot for gold, when anyone can go to the beach and get all they want.

      BUT hyperinflation can also be caused by a very short supply of goods. When there was not enough food in Jerusalem ( during the siege) people paid enormous sums of money for something that people would not even normally eat.

      So hyperinflation could come from food being in very short supply.

      3 - Famine has already taken place all down through the history of man and everywhere on the earth. So I do not know if we can say this will take place in the future by this scripture alone. For certainly it had already proven to be true.


      “A quart of wheat for a denarius, and three quarts of barley for a denarius, and do not harm the oil and wine!”

      How come these same men never preach on the blue part of this passage ?

      The oil is The Holy Spirit that lives within the saints, it will never be harmed. He will never leave us.

      Wine is made from crushed grapes, or crushed fruit. The Lord crushes our fruit and makes wine. This is a large subject within itself, and would take a whole thread. But that wine is not to be harmed. We fill our clay vessels ( we are made of clay) with the water of the word, and when we obey The Lord, when He tells us to pour it out, it becomes wine. This is the first miracle of Jesus.

      What is the crushed fruit ? The fruit of the Spirit is this: Gal 5: 22 But the fruit of the Spirit is love, joy, peace, patience, kindness, goodness, faithfulness,23 gentleness, self-control; against such things there is no law.
      24 And those who belong to Christ Jesus have crucified the flesh with its passions and desires.

      We receive the Holy Spirit and His fruit with joy, but when we find out that we must also carry our cross, we find our fruit has been crushed. But wine can flow deeper into the injuries of our hearts than grapes, that can only touch the surface.


      Lou Newton
      Last edited by Lou Newton; May 15, 2016, 01:15 PM.

      Comment


      • #4
        Amen Lou but I don't think that hyperinflation is coming because of prophecy, it looks ripe for it because of the way things are progressing in the world.

        Comment


        • #5
          The OP seems a well written article. I don't know who the man is. He may have more knowledge and wisdom than I do in economics, but he doesn't account for a number of apparent causes and effects.

          But first and foremost, the global fiat system is at risk because it's a fiat system. Every fiat system that has existed has failed spectacularly. One could point out the details of their demise, but honestly it's as simple as that. Fiat systems are made for fraud, so banks and their buddies can get rich by pilfering the wealth of the people. Folks who are in banking and business don't like to hear this, and I sympathize. On some level there are everyday people who do an honest job and do not pilfer from others, who believe in equitable commerce and trade: these are not the crooks. The crooks are way above, the designers and manipulators, thieves and liars. There is such a thing as honest banking; the fiat banks are not an example of that.

          The present ingenious, diabolical economy is a debt-credit system. When a debt is created an equal credit is created. We are given notes in exchange for our labor and property and convinced that it is wealth. Notes are promissory, they are IOUs. The issuer has promised to redeem them for value. But are they ever redeemed? We think they are redeemed by passing them off on someone else for goods or labor or favor. This just spreads debt around, and creating more notes adds to the debt bubble. We are not allowed pay on our debts. And if you think about it, we cannot due to the government monopoly on currency: we're only allowed to spend these notes. More importantly...where is the credit? And what is it used for? Our nations' deficits keep going up. Someone benefits from all this.

          As for cause-n-effects, one is US imports and exports. The US is perhaps the only nation that does not have tariffs on imports. This allows nations to dump their surplus junk on our economy in direct competition with local suppliers. We naturally prefer lower cost goods, so locals have no advantage. Also, this allows countries like China to dump goods for less than they cost to make; this is a tactic of economic warfare. This harms China a little, but in the long term it kills businesses in the US who cannot compete. Do you think our politicians who sign trade agreements don't know this? I am sure they know it. Others just put their head in the sand and believe the lies that the good of those agreements outweighs the bad. Everyone knows we are dead as an industrial nation. We used to be a top dog. Our trade policy has caused this.

          What do we have to export now? Dollars (debt) and military might. We know the dollar is under attack. And we know our military is being gutted. What do we have left, Wall Street?

          Wall Street is pure manipulation. The covers are coming off, and it is more plain to see every day. The legislators did away with Glass-Steagall. This act was designed to protect savings. Such accounts could only be used in low-risk ventures. Once Glass-Steagall was repealed banks could then use that previously safe money in risky ventures, most notoriously Wall Street's derivatives market.

          The Federal Reserve has been "printing" dollars to the tune of tens of billions per month. This is the QE policy, which was advertised as a temporary stabilization scheme, but now it has officially become QE-forever. If I recall correctly, they are printing 70 billion per month and injecting it in markets daily "for stability". There is also a fund for this, the highly secretive Exchange Stabilization Fund (ESF). Google it. They do not tell us what they're doing with ESF (but I suspect this holds some, if not all, of the credit side of the debt-credit house; if it is the credit we gave so we could be issued notes, are we not owed that credit?).

          The petrodollar was looking strong until recently, when sanctions were lifted on Iran which then flooded the market with oil. This is the cause of lower gasoline prices. It's good for Iran, who could not move its oil. But it is very bad for everyone else who is invested in oil reserves. The dollar--thanks to permissive rehypothecation, loaning precious metal reserves, and banks trading fiat paper ("free money!") for these reserves--gets its value from oil reserves. Pause and let that sink in.

          Then there are many, many creative ways to cook the books. Lou posted one, the merchant fleets that cannot even afford to sail and should be liquidated, but the bank does not so that its loss does not appear on the books.

          I don't think any of this was due to bumbling. There is intelligence behind it all.

          Lastly, there is BRICS the up and coming world economy. Nations are dumping toxic dollars for real assets. The recent acceptance of China's Yuan as an international gold-backed currency is big news. We knew it was coming. So did the UN, which is moving its base from the West to China. This is not by any means good for the dollar. Consequently, smart money is dumping the dollar. Nobody wants it. A fiat currency's value is only as good as people's faith in it.

          Seems to me if anyone is seeing deflation, it is an illusion.

          Lou, thanks so much for the Biblical comments. Satan plays a deep game, but he cannot fool God. I believe it is the grace of God that is uncovering all of the fraud in the present fiat system. It's entirely constructed on fraud. Jefferson warned us. Central banks charters were tried two or three times in the 1800's: after a 20-year charter they were each dismantled: this too seems by the grace of God. But finally they caught us in a moment of weakness. God, give us strength.
          Last edited by Baruch; May 15, 2016, 02:10 PM.

          Comment


          • #6
            Thanks Barry that was right on point.

            Comment


            • #7
              I feel a need to temper my previous post. It contains my observations and opinions only, compiled from much reading and conversation.

              Please don't despair. If you take away one thing and one thing only, God is showing His grace to us every day. I could speculate on that, but prognosticating is not my thing. I cannot think of a reason God would abandon His children: He promised He would not. He said in the world we would have tribulation, but to be of good cheer because He has overcome the world.

              What has become clear to me is that America has been in a period of captivity and bondage and delusion--this corporate fraud scheme for 150 years. It reminds me of His people enslaved in Egypt. God is calling us to awaken, and setting us free, though many don't see it yet because they watch the world, the news, the fearful. What I see is the fraud is being exposed by people in humble yet courageous ways. The people involved are seeing remedies we did not know were there. They give God the glory for these discoveries, and I can't discount it. Things come together in ways which ungodly men explain as "coincidence", but the godly call divine.

              Satan wants us to live in fear. The politicians and media peddle it. The kings of the earth would rule us by it. It is a tactic that works: and this is nothing new under the sun. It is a lie. God's grace is, and has always been, sufficient for us. When we go out we are always at war with the host of Satan, but when we come in we have rest in Christ.

              We're told to live by the faith of Christ, and exercise patience, waiting on Him. When I look too hard at those things happening in the economy (corporate politics are the economy, I refuse to separate them anymore) I can get worried. We are not called to worry, which is unbelief. We are called to walk in faith and in liberty.

              If you take anything else away from my post, I pray that it is practical. The wise sees calamity approach and moves out of the way. We can begin to do things at home an in our neighborhoods that do not depend on the fiat system. This certainly seems wise to me, and I would also consider it taking a step in faith. On a higher level, I have posted about Common Law before. It is the government of, by, and for the people and we do not need any corporation's permission to fill those offices with common people, to protect the interests of the people. This appears to be a wise, humble, and righteous step to take.

              Comment


              • #8
                Don't worry Barry, you have been nothing but an inspiration to me and many others. Your intelligent posts are informative and to the point. Much of what you say is already understood by many. Please do not refrain from further exposition on these and other topics. Blessings ..... Steve

                Comment


                • #9
                  Originally posted by Baruch View Post
                  The OP seems a well written article. I don't know who the man is. He may have more knowledge and wisdom than I do in economics, but he doesn't account for a number of apparent causes and effects.

                  But first and foremost, the global fiat system is at risk because it's a fiat system. Every fiat system that has existed has failed spectacularly. One could point out the details of their demise, but honestly it's as simple as that. Fiat systems are made for fraud, so banks and their buddies can get rich by pilfering the wealth of the people. Folks who are in banking and business don't like to hear this, and I sympathize. On some level there are everyday people who do an honest job and do not pilfer from others, who believe in equitable commerce and trade: these are not the crooks. The crooks are way above, the designers and manipulators, thieves and liars. There is such a thing as honest banking; the fiat banks are not an example of that.

                  The present ingenious, diabolical economy is a debt-credit system. When a debt is created an equal credit is created. We are given notes in exchange for our labor and property and convinced that it is wealth. Notes are promissory, they are IOUs. The issuer has promised to redeem them for value. But are they ever redeemed? We think they are redeemed by passing them off on someone else for goods or labor or favor. This just spreads debt around, and creating more notes adds to the debt bubble. We are not allowed pay on our debts. And if you think about it, we cannot due to the government monopoly on currency: we're only allowed to spend these notes. More importantly...where is the credit? And what is it used for? Our nations' deficits keep going up. Someone benefits from all this.

                  As for cause-n-effects, one is US imports and exports. The US is perhaps the only nation that does not have tariffs on imports. This allows nations to dump their surplus junk on our economy in direct competition with local suppliers. We naturally prefer lower cost goods, so locals have no advantage. Also, this allows countries like China to dump goods for less than they cost to make; this is a tactic of economic warfare. This harms China a little, but in the long term it kills businesses in the US who cannot compete. Do you think our politicians who sign trade agreements don't know this? I am sure they know it. Others just put their head in the sand and believe the lies that the good of those agreements outweighs the bad. Everyone knows we are dead as an industrial nation. We used to be a top dog. Our trade policy has caused this.

                  What do we have to export now? Dollars (debt) and military might. We know the dollar is under attack. And we know our military is being gutted. What do we have left, Wall Street?

                  Wall Street is pure manipulation. The covers are coming off, and it is more plain to see every day. The legislators did away with Glass-Steagall. This act was designed to protect savings. Such accounts could only be used in low-risk ventures. Once Glass-Steagall was repealed banks could then use that previously safe money in risky ventures, most notoriously Wall Street's derivatives market.

                  The Federal Reserve has been "printing" dollars to the tune of tens of billions per month. This is the QE policy, which was advertised as a temporary stabilization scheme, but now it has officially become QE-forever. If I recall correctly, they are printing 70 billion per month and injecting it in markets daily "for stability". There is also a fund for this, the highly secretive Exchange Stabilization Fund (ESF). Google it. They do not tell us what they're doing with ESF (but I suspect this holds some, if not all, of the credit side of the debt-credit house; if it is the credit we gave so we could be issued notes, are we not owed that credit?).

                  The petrodollar was looking strong until recently, when sanctions were lifted on Iran which then flooded the market with oil. This is the cause of lower gasoline prices. It's good for Iran, who could not move its oil. But it is very bad for everyone else who is invested in oil reserves. The dollar--thanks to permissive rehypothecation, loaning precious metal reserves, and banks trading fiat paper ("free money!") for these reserves--gets its value from oil reserves. Pause and let that sink in.

                  Then there are many, many creative ways to cook the books. Lou posted one, the merchant fleets that cannot even afford to sail and should be liquidated, but the bank does not so that its loss does not appear on the books.

                  I don't think any of this was due to bumbling. There is intelligence behind it all.

                  Lastly, there is BRICS the up and coming world economy. Nations are dumping toxic dollars for real assets. The recent acceptance of China's Yuan as an international gold-backed currency is big news. We knew it was coming. So did the UN, which is moving its base from the West to China. This is not by any means good for the dollar. Consequently, smart money is dumping the dollar. Nobody wants it. A fiat currency's value is only as good as people's faith in it.

                  Seems to me if anyone is seeing deflation, it is an illusion.

                  Lou, thanks so much for the Biblical comments. Satan plays a deep game, but he cannot fool God. I believe it is the grace of God that is uncovering all of the fraud in the present fiat system. It's entirely constructed on fraud. Jefferson warned us. Central banks charters were tried two or three times in the 1800's: after a 20-year charter they were each dismantled: this too seems by the grace of God. But finally they caught us in a moment of weakness. God, give us strength.

                  Thanks for the replies Barry.

                  I posted that article with an opinion which most of us do not agree with. But it is good to consider the opinions of others and reconsider our position.

                  Yes, it is hard to believe that our economy is not headed for a total collapse.

                  But I wanted to point out that the scripture that so many use to claim that the end times will have hyperinflation is not necessarily valid for that conclusion.

                  Further, we can not be sure of what the future holds, unless The Lord reveals that to us personally.

                  The Lord is able to cause the events He wills to take place. Plus unexpected events can cause other unexpected events that we never even considered.

                  Certainly the birth of our Lord ,of a woman, was told about in the Holy Scriptures many places, yet not one person in Jerusalem knew of His coming. Not one went to Bethlehem to see Him.

                  We may be no less blind. The key to having sight, is to confess our blindness.

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                  • #10
                    Amen Lou but I don't think that our current monetary system is sound enough to make it too much longer. But that is just my opinion.

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                    • #11
                      Originally posted by Lou Newton View Post


                      Thanks for the replies Barry.

                      I posted that article with an opinion which most of us do not agree with. But it is good to consider the opinions of others and reconsider our position.

                      Yes, it is hard to believe that our economy is not headed for a total collapse.

                      But I wanted to point out that the scripture that so many use to claim that the end times will have hyperinflation is not necessarily valid for that conclusion.

                      Further, we can not be sure of what the future holds, unless The Lord reveals that to us personally.

                      The Lord is able to cause the events He wills to take place. Plus unexpected events can cause other unexpected events that we never even considered.

                      Certainly the birth of our Lord ,of a woman, was told about in the Holy Scriptures many places, yet not one person in Jerusalem knew of His coming. Not one went to Bethlehem to see Him.

                      We may be no less blind. The key to having sight, is to confess our blindness.
                      I understand. I wasn't sure if you were agreeing with the man's economic theory. And I agree with what you've said in this thread.

                      God gave us enough wits to get through most days. But there are days when we absolutely need Him. I would argue we absolutely need Him every day. But the end of days will not be like any other day.

                      Men want to use their God-given wits to avoid or get through those days in their own wisdom, power, or might. Pure vanity. I don't see that happening.

                      Who was it that said something like...no one is an expert on the end time. But when it arrives everyone will be an expert.

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                      • #12
                        Originally posted by Baruch View Post

                        I understand. I wasn't sure if you were agreeing with the man's economic theory. And I agree with what you've said in this thread.

                        God gave us enough wits to get through most days. But there are days when we absolutely need Him. I would argue we absolutely need Him every day. But the end of days will not be like any other day.

                        Men want to use their God-given wits to avoid or get through those days in their own wisdom, power, or might. Pure vanity. I don't see that happening.

                        Who was it that said something like...no one is an expert on the end time. But when it arrives everyone will be an expert.

                        Thanks for the reply Barry.

                        I wanted everyone to think about his position on this. After all, he is partially correct, there has been some deflation on some things, like oil.

                        But that was caused by the US first becoming the number 1 oil producer, and then the traitors Obama and Kerry making a treaty with an enemy that has sworn to destroy our nation.

                        Obama was very upset when the US became the #1 oil producer because it upset his plans to destroy our republic. You could see his irritation in a speech he gave warning people that the low price would not last. So he sent the dufus, Kerry, to make a treaty with Iran so they could remove the sanctions. That meant that Iran could dump a lot of oil on the market (Iran is a very large oil producer) and try to bankrupt our shale oil and gas industry. Iran has to think we are the absolute dumbest people on earth. The oil production in the US has gone down as a result. That is not good.

                        We built the largest project ever done by mankind, in the Alaskan pipeline. But due to the oil industry not being allowed to drill any new wells, it is only being used at 1/4 capacity. They can drill many wells from one well head, so they will not harm the land up there by drilling new wells. It is pure stupidity to have that pipeline and not use it. We could be energy independent, which would help our economy tremendously. But Obama does not want that, he wants our economy to fail.

                        That is why he is bringing in Muslims by the millions and then further giving them free food, shelter, and medical. This serves several purposes; it tends to bankrupt our government, and it get millions of Muslims in our nation. He treats illegal immigrants far better than out military vets who have lost arms and legs.

                        Kerry even made a speech which he admitted openly that they want to get rid of all borders and have a world without borders. These liberal idiots need to take a trip to Africa, that is full of AIDS, malaria, ebola etc and see if they want to be like those nations. Because a world without borders would end up with all nations the same.

                        The reason they want to do this, is to rid the world of the US citizen and his RIGHTS. People with the right to free speech, right to bear`arms, right to own private property etc stands in the way of their UN agenda 21.

                        This all proves the truth of the Bible. God tells us that a man who refuses to acknowledge God, who has made it plain that He exists by His creation, becomes a fool. People who are led to slaughter like sheep and willing give up their rights are certainly fools.

                        The UN wants to bring the world population down to 500 million from the 7 billion it is today. That means they will have to get rid of 6.5 billion people. Who do you think they have in mid to get rid of, you or them.

                        BTW, I went to Jump Stretch this morning for the first time since the first week in April. I am very thankful to be back. The extreme exercise did not start me coughing. I got through it all fine.

                        Lou Newton
                        Last edited by Lou Newton; May 17, 2016, 10:43 AM.

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