Governments Continue to Enrich Bankers and Cause Inflation

From MSNBC News: "BREAKING NEWS: Federal Reserve, other central banks make massive cash injection to fight credit crisis"

Ah, yes, the big crisis...requiring the Fed Govt, the Fed Reserve, and central banks in other countries to intervene in the marketplace. Central banks are ordering more cash (that doesn't exist), governments are printing it up (from thin air), and why? So it can be loaned out, thus enabling the banks to earn more interest.

The result will be: inflation of prices of goods and services in the marketplace.

According to the late Milton Friedman (Nobel Prize winner in Economics), the cause of inflation is strictly monetary. Higher prices do not cause inflation, they are a reflection of it. The cause of inflation (of prices) is the inflation of the money supply. The reason is because when the money supply is increased, the value of each unit (e.g., the dollar) goes down; it then takes more units to buy the same item as compared to before the increase in the money supply. A simple way to understand it is: if beaches were made of grains of gold instead of grains of sand, how much would an ounce of gold be worth? [Not much.] In other words, if gold were plentiful, the value of each ounce would be a lot less as compared to when it was not plentiful. Whenever the number of most anything is increased, the value of each unit decreases.

Will the super-rich be hurt by this forthcoming inflation of prices? Not really...not compared to the effect on the rest of us. Bankers, in particular, will just get richer. They now have a lot more nonexistent money to loan out at interest.

So, let's recap. Central banks (like the Fed Reserve) are ordering up nonexistent money from Government printing houses. Governments virtually are giving the money to the banks (they pay something like fifty cents for a $100-bill), so the banks can loan it out at interest. The resulting increase in the money supply causes the value of each dollar to go down, thus there is a de facto rise in prices of consumer goods and services. The super-rich don't mind because they're...well, super-rich. Besides, they sell (on a massive scale) the goods and services that will increase in price. The banks will make more loans and garner more interest. The rest of us suffer.

The Government and the Fed Reserve have resolved another crisis! Yippeekiiyay!

Isn't it obvious by now what's going on...and what part Uncle TOM (Tired Old Media) plays?

How to Promote Statism in the U.S.

1. Elect Democrats AND Republicans to Federal offices.
2. Expand the Federal Government, as the Republicans and Democrats both have done.
3. Increase the national debt exponentially.
4. Have the Government borrow money totally beyond its means.
5. For the most part, ignore the Tenth Amendment to the Constitution.
6. Spread fear amongst the populace---fear of terrorists, disease, contaminated food, mechanical failures, and anything else that might harm people.
7. Downplay the idea of individualism.
8. Constantly tell people that onerous taxes are for "the greater good".
9. Convince the populace that inflation is "normal".
10. Denigrate the concept of commodity-backed money, and promote the concept of fiat money.
11. Pass laws in areas in which Congress has no Constitutional authority, then claim that's legal because "times have changed" and the Constitution is "outdated" and "quaint".
12. Have the Federal Government infringe on States' Rights...for "the greater good".
13. Claim that State laws, such as medical marijuana (that infringe on no one's rights or property), are illegal.
14. Institute warrantless wiretapping...for "the greater good".
15. Claim that habeas corpus does not apply if one is accused of being a certain type of criminal---a "terrorist", or "enemy combatant".
16. Have the Federal Government completely ignore lawfully executed Petitions for Redress of Grievances.
17. Claim that the narrowly restricted Federal Firearms Act applies to everyone.
18. Launch a "War on Drugs".
19. Launch a "War on Poverty".
20. Become a health fascist.

Finally, condition the populace to believe that the Federal Government can best solve most all problems, be they in the area of health, or safety, or economics, or education, or crime, or... really, anything.

The Fed Government & the Corporatocracy

There is no doubt whatsoever in my mind that our Govt virtually has been hijacked by the Corporatocracy. But unlike many people, I believe that it started decades ago...not just recently with the NeoCons. To me, it started in 1913 when bankers like Paul Warburg, et.al., ramrodded the Fed Reserve Act through Congress at a time when most politicians were on vacation---Xmas-time, I think. At the same time, they knew that money would be necessary to pay interest on what would be a huge debt, so they also managed to push through the 16th Amendment. Bankers would receive some of those interest payments because they would "buy" some of the debt---in other words, they would loan money to the Govt. [The Supreme Court almost fouled up that plan with rulings (never reversed) stating that the word "incomes" in the 16th Amendment meant "gain from corp activity"; but that didn't stop the IRS from levying an income tax on wage-earners...it was a "voluntary " tax---that part was buried in the Code & in very small print.]

Then there was WW I...a war in which we had no business whatsoever, but a war in which some folks made lots of money.

The next big move was in 1933 when Roosevelt declared a national "emergency" (due to the Depression) and outlawed the private possession of gold (except for jewelry). Roosevelt and others, according to many reports, also probably allowed Pearl Harbor to happen...much like certain NeoCons PROBABLY allowed 9-11 to happen...in order to get us into war. There are always big bucks to be made when we are at war. [People forget their history---the majority of Americans did not want to participate in either World War...they had to be sold on the idea in each case...and it wasn't an easy sell.]

Next, in 1940-something, the Govt pushed through the income tax withholding law, wrapping it in patriotism vis-a-vis WW II. [It was voluntary by the way.] In 1951 (or thereabouts), the Govt abrogated the Constitution by going to war with N. Korea without a Declaration of War and at the behest of the U.N., setting a dangerous precedent. Again, the military-industrial complex made big bucks.

In 1954, the Congress and the IRS finally removed the word "voluntary" from the Individual Income Tax Statute and Regulation, because by then everyone thought that taxes on wages were mandatory.

And on & on...right up to the present. Now don't anyone misinterpret what I'm saying here. I'm NOT saying that all just described was planned from the beginning in some giant master plan or conspiracy. Quite the contrary...at each point in time, bankers and/or other corporatists and/or rogue elements of the Govt most likely simply recognized situations that could be subverted to their mutual benefit. They more or less just stumbled from one rip-off to the next. What they had (and have) is some sort of loose amalgamation...not a tight-knit organization. [I fully realize that some people think there's a giant conspiracy of "Illuminati" out there, and a Master Plan that goes way back in time. I've researched their claims, and I don't believe it. But, to each his own, as the saying goes.]

But there can be little doubt---each subverted situation benefitted part or all of this group: bankers, corporatists, and Elitists in Govt...in other words, the rich and/or powerful...and they manipulated either events or the Fed Govt, or both, to get what they wanted. That's how the Corporatocracy operates---it is essentially a shadow govt "run" by nutcakes like David Rockefeller. [They view the rest of us as not much better than ants.]

Just my opinion.