How many times have we talked about money in the past 5 years that I have been blogging? Quite a few to say the least. So for any long time readers we all KNOW that a fiat money system is when a nation prints paper money that is backed by FAITH AND CONFIDENCE alone!
So what happens when people's CONFIDENCE wanes in that paper? It's like rats jumping off a ship! People start trying to get rid of their paper money and exchange it for something that isn't plummeting in value.
And if the nation's citizens don't want the paper issued by their government....just imagine how little interest that OUTSIDE investors would have in holding that currency.
Zimbabwe has been experiencing this as of late. Post WWI Germany experienced it...and it led to the rise of Hitler.
You see when chaos comes to a nation and everything is going crazy the people beg for ANY LEADER that can come and offer them solutions and comfort from the insanity.
One day (maybe soon?) the world will beg for the Antichrist to come and save them from their global-economic-mess.
David Buckner, the founder and CEO of Bottom Line Training and Consulting, an adjunct professor at Columbia University, and the author of “Permission to Think,” explained on the Glenn Beck Program Wednesday why America hasn’t yet seen hyperinflation — but why it could be just around the corner.
Buckner said that in discussing hyperinflation, people often refer to the Weimar Republic, Zimbabwe, and Bolivia, but say “it could never happen here” because a “certain kind of layering has to occur” that America hasn’t seen.
That layering, he said, or the “recipe” for hyperinflation, is:
1) Economic Implosion
2) Collapse in tax revenues
3) Raise taxes
4) Lenders unwilling
5) Austerity or print
Beck seemed shocked by the list, saying all five have occurred.
But Buckner said some still squabble about certain points in the list — and regardless of whether we satisfy the recipe, people still say three things in America are “different,” and set us apart from the standard formula.
First, it is said that “everyone wants to buy our debt,” and no one will ever stop wanting to do so. But Buckner countered that China is already quickly shifting our debt quickly to gold, and analogized the situation to a restaurant where China, the chef, lends the United States money to eat at its establishment. Pretty soon, he said, there will be other customers, like India, who can pay outright.
Second, some also claim that “we’re not printing money” because “we’re exchanging an asset – a bond – for cash.”
“What they’re not saying is where that bond’s coming from – treasuries. As soon as the government puts it out there, the Fed comes and takes it,” Buckner said. “It’s circular, it’s absolutely circular. So we are printing money.”
“And everybody says, well you’re not seeing hyperinflation,” Buckner said, but that’s because, “the interest rates are so low, nobody’s putting that cash back into investments in the United States. But they are putting it into desperate countries in Europe. They’re putting it into other investments. And the money’s going out there, so the second Bernanke raises the interest rates, all of the sudden the money sucks back into the United States and we have hyperinflation.”
Beck asked Buckner if we need an “event” of some sort to trigger such a meltdown.
“We’ve had an event, but…we’ve become comfortably numb,” Buckner said. “So there’s been a lot of hidden stuff that’s going on. The treasuries continue to go out, and Bernanke continues to buy debt. [But] anytime he starts to back off the markets freak out, because they know. The markets know. But we don’t, the people don’t. People who are retired, pensioners, elderly, people who are holding money are going to be devastated.”
Ouch!! Now just imagine Social Security checks and how you are waiting for your $1500 check only to find out that $1500 is what your food bill is EVERY MONTH!! Yep!....that would certainly meet the definition of "devastating."
I do realize that SOME PEOPLE believe that Babylon spoken of in Revelation 18 is speaking about the United States (New York City, specifically)....I do not make that claim. However, reading this passage as you contemplate America and all the crap we bought from China, and the luxuries we have surrounded ourselves with while our pulpits preach puke, our Bibles remain unread and our Federal Government is shut down....makes one wonder....
9 “When the kings of the earth who committed adultery with her and shared her luxury see the smoke of her burning, they will weep and mourn over her. 10 Terrified at her torment, they will stand far off and cry:
“‘Woe! Woe to you, great city,
you mighty city of Babylon!
In one hour your doom has come!’
11 “The merchants of the earth will weep and mourn over her because no one buys their cargoes anymore— 12 cargoes of gold, silver, precious stones and pearls; fine linen, purple, silk and scarlet cloth; every sort of citron wood, and articles of every kind made of ivory, costly wood, bronze, iron and marble; 13 cargoes of cinnamon and spice, of incense, myrrh and frankincense, of wine and olive oil, of fine flour and wheat; cattle and sheep; horses and carriages; and human beings sold as slaves.
14 “They will say, ‘The fruit you longed for is gone from you. All your luxury and splendor have vanished, never to be recovered.’ 15 The merchants who sold these things and gained their wealth from her will stand far off, terrified at her torment.
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