It’s flat out amazing (and incredibly embarrassing) to see how easily we’ve been spun, programmed and propagandized to the point that we don’t even notice that pretty much everything we’re most encouraged to pour our passion into is a distraction from the gigantic pulsing tap root that’s feeding and fueling all of the cultural rot and decline that we witness and bemoan so routinely these days.
From Presidential politics and pro wrestling to March Madness basketball and the latest Hollywood productions, we are relentlessly fed a steady diet of distracting disinformation by a System of systems dependent upon our failing to recognize the utterly fictional economic foundation upon which it is built.
If we were to ever simply stop and honestly acknowledge the nothing that props up and propels our corrupt political system and Corporate-backed cultural perversion forward, we’d be compelled to abandon it and the whole thing would come crumbling down around us…which is precisely why distraction is everything to the System.
If we can be distracted by a mountain of arguments over how to best manage the “money” crafted by some out of thin air, perhaps we will never notice the fact that this “money” has been crafted by some out of thin air.
If we can be distracted by a political puppet show owned and operated by those who craft this “money” out of nothing (and then use it to finance the political puppet show in question), perhaps we will never notice that the “money” around which we are told to build our lives is a fictional construct made effortlessly by those atop a black magic fiat economic construct that never seems to be seriously (if at all) confronted, much less corrected, by any of the political puppets allowed onto the national stage.
The black magic fiat economic system under which we labor is the most significant enabler of the large scale rot being propagated in the culture…and it is dutifully ignored and/or protected by all of the wannabe Presidents seeking our votes in this season’s run of The American Presidental Puppet Show.
Please notice that.
Please think about it.
In another excellent article from Mises Daily, Dan Sanchez provides some helpful (if painful) illumination as to how this satanic System of systems does its black magic economic thing:
Imagine Uncle Sam sitting at a desk, representing the Federal government. His right hand is the Treasury. It has the government’s main bank account, represented by a ledger on the desk. Uncle Sam also has revenue collecting powers, represented by a gun resting on the desk, which he uses to extort taxes from the public. Whenever he confiscates money, the cash balances of the public decline, and Uncle Sam’s ledger increases by the same amount.
Now let’s say Uncle Sam wants to raise $200 million for current expenditures: bureaucrat salaries, weapons purchases, welfare payments, etc. The problem is, the public has a limited tolerance for overt taxation. So, at a certain point, if Uncle Sam simply gestures to his gun again to levy the funds, he might face a tax revolt.
So let’s say instead of using his taxing power, Uncle Sam uses his fiat money power: his ability, based on the government’s monopoly control over the money supply, to inflate (defined here as monetary expansion). As the God of the Bible could say “let there be light” (in Latin, fiat lux) and it was so, the modern omnipotent State can say “let there be money” (fiat money or fiat pecunia) and it is so. With his right hand, Uncle Sam adds $200 million to his Treasury bank balance by simply writing it on his ledger. Voilà, he now has $200 million, simply because he says so. He can then transfer the new money to his workers, contractors, and dependents.
“He now has $200 million, simply because he says so.”
Please note that.
Please think about it.
Please consider what it means….to you, your family, your church…your community, your state, the culture…your children, grandchildren, and countless generations to come…
Please don’t look the other way.
Please don’t pretend.
Please don’t be a coward. Don’t be apathetic. Don’t be lazy.
The true [material] wealth of society – what actually sustains human life and makes it more comfortable and delightful – is the stuff we buy with money; not money itself. It’s the food, clothing, housing, smartphones, mountain bikes, and other consumers’ goods. It’s also the farmland, factories, robots, raw materials, labor and other producers’ goods used to make those consumers’ goods.
Creating new money does not create any additional stuff to go around. So if creating money got the government more stuff, that means others sharing the same world of scarcity must have less stuff. It’s a zero-sum game; a win-lose situation. If the government wins something through inflation, somebody has to lose. So who loses?
Well what if the government did not have the money needed to hire the bureaucrats? Then that labor would have had to enter the private market. And what if the government couldn’t afford its weapons purchases? Then that capital would have been liquidated, even scrapped, and would have also been reallocated to the private market. So the losers include the private market actors that would have acquired the labor and resources, had they not been outbid by the government’s inflation-enhanced purchasing power.
But the government paymasters are not the only one who gained from the inflation. The bureaucrats and contractors themselves did too, because their wages and selling prices were bid up higher than otherwise. And then since the government suppliers also have more money to spend, their own workers and suppliers benefit similarly.
Does that mean that as the new money filters through the economy’s supply chains, everybody’s selling prices get bid up? Yes, that’s an alternative definition of “inflation”: the general rise in prices caused by monetary expansion. But does that make everybody better off? That is impossible, because again, that would mean more stuff had been created, when it wasn’t.
The new money reaches some people early and some people late. By the time the new money reaches the late receivers, bidding up their selling prices, it has already bid up the prices of the things they buy to an even greater extent. So the late receivers get poorer, while the early receivers get richer . . .
“The late receivers [you and me] get poorer, while the early receivers [those atop the System] get richer”…all by design.
Please understand this.
Do not hide from it. Do not ignore it.
Please accept this reality and begin to pray and live accordingly.
The article continues:
Let’s say instead of the Treasury creating the $200 million, it borrows it from an investment bank, like Goldman Sachs. Let’s see if, working together, Uncle Sam and Goldman can inflate, and both come out richer with a stroke of a pen, at the expense of the public, without it being clear that they did.
To borrow the funds, Uncle Sam’s Treasury right hand writes on a piece of paper: “IOU $200 million.” That represents a bond issue. Goldman lends the government money by purchasing the bonds. $200 million transfers from Goldman’s ledger to Uncle Sam’s. And in return, Uncle Sam gives Goldman a transferable IOU which gives the holder the right to collect $200 million from Uncle Sam later, plus interest. Then, the Uncle Sam transfers the newly borrowed $200 million to his bureaucrats, contractors, and dependents. And now the Treasury owes Goldman $200 million plus interest.
But that’s where Uncle Sam’s left hand finally comes into play (shell games usually require two hands). His left hand is the Federal Reserve. In the US government’s real-life arrangement, it is the Fed, not the Treasury, that has the power to create new money.
Now the Fed goes shopping for government debt. Lo and behold, it finds that Goldman Sachs is selling $200 million in Treasury bonds. Let’s say the Fed then pays $205 million for the bonds, giving Goldman a tidy profit. But of course the Fed has its own peculiar way of paying. Uncle Sam just reaches over with his Federal Reserve left hand and credits Goldman’s account $205 million by simply writing it directly on the investment bank’s ledger. Keep your eye on the ball! That money was conjured out of thin air. That is where the inflation occurs in the slightly more elaborate process. “Fiat pecunia!” says Fed Chair “Hermione” Yellen. For all its technocratic jargon, this sleight-of-hand is pretty much the only “magic” trick the Fed knows.
Now let’s review. Who benefits? Goldman Sachs has $5 million in profit. And Uncle Sam was able to pay off his crew. At what cost? Well, the Federal Reserve has $200 million in Treasury IOUs. But that only means the Treasury owes the Fed $200 million plus interest. In other words, Uncle Sam’s right hand owes his left hand some money. But it’s all Uncle Sam; it’s all the same government. As Boston University economist Laurence Kotlikoff has pointed out:
Yes, the Treasury pays interest and principal to the Fed on the bonds, but the Fed hands that interest and principal back to the Treasury as profits earned by a government corporation, namely the Fed.
Uncle Sam gave up nothing. There are no costs for the government or its buddies. They are simply enriched. And again, inflation cannot enrich early receivers of new money without commensurately impoverishing the late receivers. The monetary expansion simply aggrandized the government, its bureaucrats, its contractors, and (now) its banking buddies at the expense of the general public, just as it did in the simpler example.
But that is not clear to most observers, because they get distracted and confused by the Treasury/Fed/private bank shell game that Uncle Sam plays.
Guess who won’t be campaigning on aggressively attacking this critical, culture-shaping issue?
Guess who won’t be seriously charging forward to liberate families from the incredible bondage purposefully brought about by this satanic economic construct?
Guess who won’t be highlighting this indefensible Achilles’ heel of the Dragon that is devouring our culture?
Well, the list of “leaders” and “experts” who will not be identifying, much less slaying, this dragon is long…but here are a few noteworthy examples:
Be cause they are wholly owned dependent puppets of the very System in question. The Pagan Political Right and Pagan Political Left are two wings of the same fiat financed Dragon.
Article reposted with permission from Fire Breathing ChristianDon't forget to Like Freedom Outpost on Facebook and Twitter, and follow our friends at RepublicanLegion.com.
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