Published on May 26, 2013
James Stewart stayed in business with the help of his wife and without a printing press (FRL). No big kisses for valued savers anymore. Nowadays bankers have replaced savers with fraudulent money creation.
FRL is pointless if it not used to constantly increase the leverage and debt in an economy. Take notice how almost none mention this extremely important fact and how rarely the ills of FRL are mentioned by the media. FRL is the fallacy of infinite leverage. Any market that is backed by infinite leverage is fraudulent whether they are any existing market, like the housing market, or any new market such like when banks and others create markets in securities and derivatives. FRL provides the means for corrupt bankers and financiers, without it savers would be their restraint. FRL progressively creates a situation where money lent is created out of thin air and money in circulation is just for spending and not saving. Ultimately saving and savers are not required in order to lend from FRL, hence the so called 'tax' on savings in Cyprus. It is no surprise, it is an inevitability of continuing FRL as is negative interest rates. Bank runs are from depositors fearing a banks insolvency. Too big to fail is bank run proof. The US or UK currencies will not be devalued against gold this time, remember Ben Bernankes 'gold is not money, but traditional', in the 1930's people carried gold coinage and the gold standard was in place, but not today. FRL is the ongoing devaluation method and QE is the new method. FRL counterfeiting of money both creates and extends the class divide and the wealth gap. The infinite leverage of FRL actively searches for 'failure of the biggest'. Debt is the opposite function of credit, a 1 to 1 relationship between the two is a free market in the price of money (price being the interest rate). Debt is not the problem, but artificially created debt (debt out of thin air). When artificially created money of FRL and QE (money out of thin air) is lent out it becomes debt out of thin air. Any money created is best created debt free and democratically. Note: Private banks offering interest free FRL would not restructure and balance the economy, but serve to increase the debt and create more ponzi jobs.
Mervyn King said it was a UK idea to bail out the banks. I ask " an idea for whom?" because the bailing out of the banks was an inevitable conclusion of a ponzi economic policy using FRL in a society that is not taught the importance of the 1 to 1 relationship between borrowers and savers. Indeed FRL subsidizes banks and ponzi businesses period.
Ben Bernanke said "We do not see the potential costs of the increased risk taking in some financial markets as outweighing the benefits of promoting a stronger economic recovery. Inflation is currently subdued and inflation expectations appear well anchored". His mind programmed belief that money creation used to artificially stimulate the economy is always the solution is almost hard wired, besides it is not his job to initiate policy change to reconstruct the economy, so what else is he going to do! With the percentage of employed people constantly falling (unemployment figures do not reflect increasing disability benefit claims and those not claiming anymore) there is a constant deflationary effect, hence in the short term the inflationary effect of QE is mitigated. Also, much of the QE money goes into inflating luxury and ponzi asset classes ie. derivatives markets, business and jobs, rather than entering the regular economy to cause the inflation index to rise. ie imagine what the inflation rate index would be both in the past and currently if it correctly represented the hundreds of trillions held in the derivative markets. By the time the index does start to rise much higher the window of opportunity will have passed and it will be too late to do anything different. In essence everyday without change is reaffirming the potential of modern mans suicidal ideology.
Rockerfellow used FRL and said "competition is a sin" because he wanted financial control. I say the same because it is a sin when competition discards the competition of savers.
Remember, FRL is the main factor that sets up most of the imbalance and disfunction in the economy. It has been with us all the way, barely mentioned by many and certainly without the relevance it deserves to the death and destruction it can cause. FRL should be made illegal and changeable by referendum only. It's ill effects should be taught to all schoolchildren and on the lips of any good leader.
Video extract taken from the film "It's a Wonderful Life".
I love how Clarence changes the discouraged Mr Bailey's outlook.
Mostly written around March 2013.