Silver Bullion intends to provide an answer to the above question in a manner that should be understandable to most members of public. In our opinion it is of utmost importance that the public not only realises that fiat currency failure is the primary driver behind rising food and other prices, that rising prices are predominantly the symptom of reckless monetary expansion (inflation) within a fiat or debt-based currency system, but also to get a firm grip on what they must do to protect themselves against the insanity that prevails. 

Food and other prices have increased rapidly over the last few years, especially since the global financial crisis that started in 2008. A visit to the local super market will attest to the above-mentioned fact and we’re certain that we haven’t seen the worst of it yet. Now it is no secret that the mainstream blames these increases on everything except currency failures.  E.g. South Africans have recently been warned by economists to expect a rise in food inflation to levels of “…between 12 and 15 % in the coming months…”, and further more indicated, that “…food prices could reach record highs” (‘Government must treat escalating food prices as crisis’, SABC News, 7 August 2012). They of course primarily blame this on the severest drought in the Midwestern United States (Midwest) since 1988. In addition, they’ve warned us that while “…maize prices are expected to fall again once the global supply situation’s normalised, the high cost structure in South Africa’s agricultural sector will likely result in higher food prices on supermarket shelves remaining elevated” (SA warned about high food prices, SABC News, 6 August 2012). This is all fine and dandy as they will say in the States, but needless to say, they’re not giving you the full picture folks and with reason. Yes, droughts can most definitely negatively impact global food supplies and lead to higher food prices, but they fail to mention the devastating impact fast failing fiat currencies are having on the prices of food and other goods/services globally. It should after all be no secret that we’re sitting today with a fiat or debt-based currency system, where they not only charge interest on loans, but we’re fiat currencies that are nothing short of debt instruments, get created out of the proverbial thin air, electronically and otherwise. Many refer to these fiat currencies as money, but nothing could be further from the truth. Currency, especially fiat currency, is not money and never will be money. Money has for one intrinsic value, which means it cannot be created out of the proverbial thin air; it has value that is intrinsic to it, which is not dependent on any government decree or declaration for it to have value such as the case is with fiat currency.

ponzi scheme

Yes, believe it or not, the fiat currency you hold only has value because the Banking Cartel and their allies, politically and otherwise, tell you it has value. This while it has little or no intrinsic value and neither is it backed by anything of intrinsic value. In addition, money, unlike currency or fiat currency, carries no counter party risk (default risk). Yes, what few people realise is that when you hold and/or save in fiat currencies (U.S. Dollar, British Pound, EURO, South African Rand, etc.), you’re in fact holding and/or saving in debt instruments and all debt instruments have counter party risk attached to it. In simpler terms, this means that there is no guarantee that the purchase value of the fiat currency you hold today will be the same tomorrow. This is why it is best to save in money, especially in the form of gold and silver bars and coins. The truth be told, fiat currencies brought into existence through government edict present claims on our productive efforts in the real world, but because it gets created out of the proverbial thin air and are not redeemable in money (gold and silver), it are nothing short of debt instruments used to maintain a Ponzi scheme, namely the global fiat or debt-based currency system. We like to refer to it as the global fiat Ponzi scheme or the “paper gimmick”.

Now, like the case is with any other Ponzi scheme, it can only work while the majority of victims are convinced that it is not a criminal scheme and while the reality of limited resources and more have not caught up with the scheme yet…

Yes, the global fiat Ponzi scheme or the “paper gimmick” can only work while the privately-owned central banks or the Banking Cartel, the main perpetrators behind the Ponzi scheme, bring more fiat currencies or debt into existence than the year before and while it is backed by healthy economic growth, sufficient resources, etc. If they fail to do this or if resources start running out and other realities kick in which off-set the benefits of participation in the Ponzi scheme, or ‘the system’ as some likes to refer to it, the fiat Ponzi scheme will start to collapse. In fact, it is a classical catch-22 situation, because once it becomes a mathematical impossibility to off-set the unnatural expansion in the monetary base with healthy fundamentals (or austerity measures), the perpetrators have primarily only two choices left: Face immediate default or monetize the debt. The Banking Cartel and their allies, politically and otherwise, almost never choose the first option, because it increases the chances of them, not only losing control over the masses that they feed off via the fiat Ponzi scheme, but of them going out of business, having to face the anger of the masses and the real possibility of suffering untimely deaths. History had after all shown time and time again that, as Gerald Celente of The Trends Journal states, “when people lose everything, they have nothing left to lose, and they lose it.” Thus, the less the masses have to fall back on in terms of money (gold and silver) and anything else of real value when the fiat Ponzi scheme completely and/or utterly collapses, the greater the chances of the Banking Cartel to retain control over the masses and to kick start a fresh series of shenanigans. This is why they almost always choose to monetize the debt, which means the only solution they place on the table is to create more and more debt or fiat currencies in order to temporarily meet existing fiat or debt obligations. Fiat currencies, as already mentioned, are debt instruments and thus, monetary expansion in such a monetary system is equal to an increase in debt, because the more fiat currencies they create out of the proverbial thin air, the more debt or claims on productivity and what productivity can deliver, namely goods and services, come into existence. This of course always lead to the utter or complete collapse of the underlying fiat or debt-based monetary system at some stage or another, especially when it gets clear to the majority of people that there are simply too many claims for the same units of productivity.

jp morgan

The Banking Cartel is of course keenly aware of the fact that they’re running a Ponzi scheme which will eventually collapse, causing a great deal of upheaval to state it mildly. However, they know that to monetize the debt will buy them a little more time to fleece the masses and to enrich themselves further in the process. Their primary aim is after all to fleece the masses with the help of their allies, politically and otherwise, to the extent where the masses will be left destitute when the mentioned Ponzi scheme completely and/or utterly collapses. This is when the Banking Cartel intends to once again step in as the self-appointed saviours of the masses, pretending at best to be champions for one of a currency system based on sound money, namely gold and silver. In fact, if we’re extremely lucky, they might even go as far to forbid fractional reserve banking and the charge of interest on loans, all in a bid to fool the masses they wish to control. Make no mistake however, as soon as the proverbial dust has settled and they have once again key politicians and other entities of influence in their pockets, not even to mention control over the news media and what have you (which is used to engineer public opinion to their liking), they will once again through trickery and deceit push for a debt or fiat based currency system where they can create claims on our productivity at heart’s delight, claims or ‘money’ they will once again use to promote all kinds of evils. Thus, don’t be surprised if they going to attempt to implement a new gold-backed currency when the existing fiat or debt-based monetary system fully implodes. It will be business as usual for them, because any currency is open to abuse and affords the Banking Cartel with the opportunity to exercise undue influence over the masses. Any currency is open to abuse, because it presents at best a promise of money, a promise that can be created out of the proverbial thin air and easily be broken. Again, their primary aim is to fleece the masses with the help of their allies, politically and otherwise, to the extent where the masses will be left destitute when the mentioned Ponzi scheme completely and/or utterly collapses.

bailoutsred

This is why we’re for one seeing more and more instances of banker corruption, not even to mention all the bailouts of Banking Cartel members at the expense of the public, whiles members of public receive little or no support when they are in dire straits financially. Yes, every time there is a bailout, they create more fiat currencies, debt or claims as already mentioned, out of the proverbial thin air, which ultimately decreases the purchase value of the fiat currencies the public or masses hold.

The public or masses are of course not aware of the fact that the fiat currencies they hold are going to lose purchase value faster than ever before, especially by the time hyperinflation kicks in, and will become utterly and/or completely worthless at the end of the day.

In fact, instead of heeding sound advice and exchange the fiat currencies they hold for money, namely gold and silver, while they have the opportunity to do so, especially at these low paper-manipulated gold and silver prices, the majority of people still choose to keep their savings in fast failing fiat currencies which they erroneously believe to be money. To make matters worse, they erroneously believe that by keeping the fiat currencies they own in financial instruments or accounts where the “capital is guaranteed”, where they can earn “exceptional returns” and where they get access to “a flexible investment period with no notice required”, they will not lose their ‘money’. Firstly, like already mentioned, currency is not money and never will be money; no amount of fraud, lies, deception and what have you will ever be able to change that fact of life. So how can one lose money if one is not holding or saving in money in the first place? Secondly, assuming that they can indeed guarantee one’s ‘capital’, it is erroneous to assume that one won’t lose ‘money’, just because one’s ‘capital’ is guaranteed. The important question here is: “Do they guarantee the purchase value of the capital one places in their trust?” Now any honest person will have to admit and immediately say “no”, because we all know the ‘capital’ is guaranteed, but not the purchase value of the ‘capital’. In simpler terms, $10,000 today has far less purchase value than $10,000 a year ago, not even to mention a decade or further back into the history of fiat currency. In other words, as already mentioned, one should always seek to save in a store of value such as money, especially in the form of gold and silver bars and coins, not in fiat currency, even if one’s ‘capital’ is guaranteed. In addition, it must be said that there is absolutely nothing out there, including property in the form of real estate, which can offer the same protection as money when it comes to a store of value. Yes, this is nothing short of saying that money is the best means to guarantee the purchase value of one’s ‘capital’. Thirdly, once capital controls are implemented, what are the chances that they will honour “a flexible investment period with no notice required”? The truth be told, once capital controls get implemented, they will dictate to you the maximum amount of fiat currency you can withdraw per day from your accounts, even if it means that you’re ‘capital’ will be worthless by the time you manage to get all of it out of the relevant fiat or debt-based financial instrument or account.

zimdollar1

E.g. consider the image of the “One Hundred Trillion Dollars” in Zimbabwean fiat paper currency above. Now assume a super wealthy individual had one hundred trillion Zimbabwe Dollars to invest in a money market account in Zimbabwe before all the trouble started, would he/she at the end of the day care whether the ‘capital’ held/invested in the money market account is guaranteed or not? I mean, why would he/she cared about getting one hundred trillion Zimbabwe Dollars out of the bank, if it at some stage it couldn’t even buy a bus ticket in Harare??? Now if the individual opted to guarantee the purchase value of the one hundred trillion Zimbabwe Dollars before all the trouble started instead, by buying and holding physical silver and gold (money), it would have been a different story altogether. 

Ok, so given the above, do you understand why we say that fiat currency failure is the primary driver behind rising food and other prices, that rising prices are predominantly the symptom of reckless monetary expansion (inflation) within a fiat or debt-based currency system? Do you understand why it is an absolute waste of time to save fiat currency instead of money, namely gold and silver?

Print Friendly, PDF & Email